Microsoft Shares Breached $100 Mark For the First Time in History

    Author Siraj SarwarPosted on Categories Application Software, TechTags , ,
    Microsoft Shares

    Microsoft (NASDAQ:MSFT) share price breached the $100 level for the first time in history, and its market cap of $776 billion exceeded Alphabet’s (NASDAQ:GOOGL) market cap of $774 billion after six years.

    Source: finviz.com

    The stunning rally in MSFT stock price in the last three years led it to attain a leading position in the tech industry. MSFT share price increased 17% since the start of this year, increasing the twelve-month rally to 44%.  MSFT stock is up 119% in the last three years. The stock currently trades around $101 a share – with the 52-week trading range of $68 to $102 a share.

    Innovations are Strengthening Traders Confidence

    The share price gains have been receiving support from investor’s confidence in Microsoft’s potential to offer innovative products according to the rapidly changing environment in the tech industry.

    JP Morgan analyst Mark Murphy praised MSFT management for setting solid footholds in cloud businesses. Murphy said: “While the PC cycle and Windows dynamic are still highly relevant, we believe Microsoft is pushing forward with a successful cloud strategy.”  

    Financial Numbers Supports Share Price Rally

    The company’s revenue grew 16% year over year in the latest quarter, driven by growth from all three business segments.

    Source: Q3 Presentation

    Microsoft’s Productivity and Business Processes, Intelligent Cloud, and Personal Computing business segments generated double-digit growth in the latest quarter from the year-ago period. The tech company also has the potential to turn solid revenue growth into big profits. Its diluted earnings per share jumped 36% in the latest quarter from the year-ago period.

    The company expects sustainable growth in its revenue and earnings in the following quarter, which would continue to offer strong support to its share price.

    “Our results this quarter reflect the trust people and organizations are placing in the Microsoft Cloud,” said Satya Nadella, chief executive officer of Microsoft. “We are innovating across key growth categories of infrastructure, AI, productivity, and business applications to deliver differentiated value to customers.”

    Featured Image: Depositphotos/© Observer


    Author Siraj Sarwar
    About the author: Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.