Beijing time on October 27, after the release of Amazon‘s latest financial report, the company‘s share price fell on Friday, which means that Microsoft is currently the second-highest company in the United States.
Amazon has been the second-largest company after Apple, even at a market value of $1 trillion in early September, but the plunge in technology stocks in October caused the valuation of the Seattle e-commerce giant to fall on Thursday. To 869.2 billion US dollars. However, this valuation seems to continue to fall. After Amazon announced its third-quarter earnings, the company’s share price fell 8.5% in early trading on Friday.
If this decline continues until the close, Amazon will be surpassed by Microsoft. After Microsoft announced its earnings on Wednesday, the stock rose 5.8%. As of press time, Microsoft’s share price fell 0.5% on Friday, if these losses continue to close, Microsoft’s market value will reach 828.5 billion US dollars. If Amazon’s decline continues, its market value will fall to about 806.2 billion US dollars.
In August of this year, Apple beat Amazon and became the first company with a market value of more than $1 trillion. Amazon had an intraday valuation of a trillion high in early September, but never ended a trading day with such a high valuation.
A number of analysts expect that Microsoft will eventually break through $1 trillion and continue to compete with Amazon in the cloud computing arena, while making progress in cloud software and traditional PC business.
Microsoft’s stock price needs to reach $130 to reach $1 trillion. More than a dozen analysts have a target price of $130 or higher for Microsoft; as of Friday morning, more than 30 analysts tracked by FactSet have an average target price of $125.69.
Amazon needs more than $2,045 per share to reach a $1 trillion valuation. After the e-commerce giant announced its earnings report, the company’s more than 40 analysts tracked its stock with an average target price of $2,183.67. Only eight analysts have a target of less than $2050 per share.