Microsoft overtakes Amazon as second most valuable US company

  • TECH
  • Monday, 29 Oct 2018

FILE PHOTO: The Microsoft sign is shown on top of the Microsoft Theatre in Los Angeles, California, U.S. October 19,2018. REUTERS/Mike Blake/File Photo

SAN FRANCISCO: Microsoft Corp regained its spot as the second most valuable US company on Oct 26 after a disappointing quarterly report from wiped US$65bil (RM271.63bil) off the online retailer's market capitalisation.

Apple Inc tops the list at over US$1tril (RM4.17tril) after crossing that threshold in September. Microsoft's market capitalisation was Wall Street's highest in late 1998 through early 2000 before the dot-com bubble burst.

Amazon's shares dropped 7%, the most in nearly three years after its holiday season sales outlook missed targets, fanning concerns that Wall Street's tech darlings are finally starting to face stronger competition.

Microsoft fell a more modest 1.1% in a broad technology sell-off that was also driven by a weaker-than-expected report from Google-parent Alphabet Inc, leaving the Nasdaq composite index down 1.9% late Friday afternoon.

Shares of Microsoft remain up nearly 4% from Oct 24, when the four-decade-old software company beat quarterly profit expectations, driven by its cloud computing business that competes with Amazon's.

Its stock market value on Oct 26 stood at US$823bil (RM3.43tril), on track to close above Amazon's for the first time since April, when it gave up its spot as second largest company by market capitalisation.

Amazon was worth US$805bil (RM3.36tril) on Oct 26, after falling below Microsoft's in extended trade on Thursday. The drop was equivalent to the combined values of Target Corp and Corning Inc.

Amazon's tumble left it up around 40% year to date, while Microsoft has gained about 25% in 2018. On Wednesday, Amazon's stock traded at the equivalent of 70 times expected earnings, its lowest level since 2011.

The average analyst price target for Microsoft puts its market cap at US$963bil (RM4.02tril), while the average price target for Amazon values it at US$1.068tril (RM4.46tril)

Apple will report quarterly results on November 1. – Reuters

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