Microsoft passed Google parent Alphabet in market capitalization for the first time in three years on Tuesday, reflecting the company’s continued surge as it invests heavily in cloud and AI technology.
According to a report appeared on CNN, Microsoft was valued at more than $753 billion after Tuesday’s market close, just above Alphabet’s $739 billion. Its stock price is now at $98 per share, up 40 percent in the past year. It now trails Amazon ($782 billion) and Apple ($924 billion) for the title of most-valuable tech company in the world.
Business is booming for the Office 365 software suite and the Azure hosting business. Microsoft’s sales and profits are expected to grow at a rate of more than 10 percent for the next few years, impressive for a company of Microsoft’s size, the report added.
In addition to the push to cloud versions for Office and other popular Microsoft business software, Nadella also has made a big investment in social media with the $26 billion deal for LinkedIn in 2016.
In the same year, Microsoft established the AI and Research Group. The group grew from 5,000 people to 8,000 in its first year. In March this year, Microsoft reshuffled its engineering divisions to focus even more on AI and cloud computing, GeekWire reported.
Several analysts think the positive momentum will continue for Microsoft, predicting the company will reach a $1 trillion market value before its tech rivals, the technology news website reported.