Amazon.com Inc.’s stock market value surged to more than $700 billion on Friday. It’s now on the verge of surpassing Microsoft Corp., following the online retail giant’s reported blockbuster results the day before.
Amazon’s stock rose by 3.7 percent at $1,441 per share during afternoon trade. The stock was able to trade as high as $1,498.
The online retail behemoth’s North American revenue was up 42 percent to $37 billion. International sales meanwhile rose to $18 billion, growing by 29 percent.
The company stated that its fourth quarter earnings include a tax benefit of roughly $789 million. This was due to the change in the U.S. tax code.
Microsoft on the other hand fell 2.2 percent to $92.97, causing its market capitalization to fall to around $711 billion.
Apple Inc.’s market worth was at $827 billion on Friday after reporting disappointing iPhone sales on Thursday. Apple is considered to be the world’s most valuable listed company, but its stock fell to $161.57, dropping 3.7 percent.
Numerous brokerages and analysts raised their price targets for Amazon after posting record profits. Prices were boosted to as much as $1,750, which will put it at a market value of $850 billion.
Ever since Microsoft’s Chief Executive Satya Nadella took over the helm in 2014, the company’s stock has soared by 150 percent, reaching new highs. Despite this, the company still failed to keep up with Amazon shares.
The e-commerce giant’s shares climbed 73 percent for the past 12 months alone.
AWS Leads the Cloud Platform Market
Amazon’s revenue continues to grow fast due to more shopping being moved online and the businesses shifting their computing operations to the cloud. With this, Amazon Web Services (AWS) has started becoming the leading cloud platform in the market.
AWS has reported a 45 percent surge in revenue, reaching $17.5 billion in the quarter. According to Amazon, AWS represents one-tenth of the company’s total revenue.
“AWS is still adding more incremental dollars than all public cloud competitors combined,” said analyst Ross Sandler.
The major competitors of AWS are IBM, Oracle, SAP, Microsoft’s Azure and Alphabet Inc.’s Google Cloud platform.