Microsoft Corporation (NASDAQ:MSFT) may not be in a better position in the list of companies racing up to become the world’s first trillion-dollar public company. However, recently after its younger tech peers went up in valuation, Microsoft rose to become the second most valuable company. This is the first time the company has recorded such valuation since 2015.
Microsoft, on Tuesday was valued at $714 billion. This is around $3 billion above Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc Class C (NASDAQ:GOOG). Apple Inc. (NASDAQ:AAPL) was the only company valued above Microsoft at$838 billion. On April 12, Microsoft briefly rose to position 2 and again on April 16. However, it failed to maintain the position for long.
On Tuesday, Microsoft rose to position 2 after its share fell by less than 2.3% compared to that of its competitors. The rise was occasioned by worries about increased U.S. Treasury yields plus poor earnings results by its rivals which sent the S&P 500 down1.3%.
Shares of Alphabet went down by 5% on Tuesday after worries emerged about its earnings reported the previous day. Shares of Amazon slumped 3.8%.
Many investors are worried that the company’s earnings in the next few weeks may fail meet majority expectations. In 2017, tech companies performed exceptionally well but they have fell back since the start of this year as investors’ enthusiasm goes down.
Under CEO Satya Nadella Microsoft’s stock has gained a lot of momentum and has been on the rise since the start of this year. Nadella has been lauded for boosting the company’s corporate-focused business. The rise takes the company back to the times when it used to be the most valuable company globally. This happened in 2000 at the height of the dot-com boom and the company was valued at $533.4 billion. This is around $777 billion in the current dollars. It was followed by companies like General Electric Company (NYSE:GE) and Cisco Systems, Inc. (NASDAQ:CSCO). However, Microsoft’s shares took slumped after the bubble burst. The distraction of an antitrust lawsuit that was filed by the Department of Justice together with a lot of missed opportunities did little to help.