According to a new report, Microsoft has now overtaken Amazon to become the second most valuable company behind Apple. This has been possible with the company recording a great fiscal quarter.
Microsoft has also got some help from Amazon which had a disappointing performance in the first fiscal and is now third behind Apple and Microsoft.
Apple currently holds the number spot being the first company to break the $1 trillion thresholds earlier in the year. If the same trend is continued by Microsoft, it would be become the second company worth $1 trillion and snatch the first spot from Apple.
But it will not be an easy road for Microsoft since Apple is due to release its earnings report next Thursday and with the release of the new iPhones, there are chances of it retaining the number one spot currently.
If the latest quarter reports are anything to go by, then we assume that Microsoft could reach the $1 trillion mark by 2020.
Microsoft earnings report
Microsoft’s CEO Satya Nadella recently announced the company’s FY19 Q1 financial results. Microsoft has seen an overall growth in divisions like Surface and Cloud with Cloud attributing to the company’s results.
Microsoft’s cloud business has seen a massive growth with it contributing $8.6 billion (up by 24 percent) out of the total $29.1 billion revenue for the Q1 which is up by 19 percent this fiscal year. The total net income of Microsoft has reached $8.8 billion which is a growth of 34 percent from the previous fiscal year same quarter.
The Productivity and Business Processes has seen an increase of 19 percent from the previous year to reach $9.8 billion while Office products have contributed 16 percent of the total revenue.
Satya confirmed that Office 365 consumer subscribers have reached 32.5 million currently. LinkedIn which was purchased by Microsoft for $26.5 billion, has also seen a revenue growth of 33 percent during the quarter.
Microsoft’s Windows and Surface business saw a revenue growth of 15 percent to reach $10.7 billion out of which the Windows OEM has contributed 3 percent growth. Microsoft’s Gaming business has also shown a record growth during the quarter of 44 percent with the company’s Xbox software and services business contributing 36 percent.
The Microsoft’s Surface business has increased by 14 percent. This is expected to improve as the company recently unveiled the Surface Pro 6, Surface Laptop 2 and Surface Studio 2.