14 DAY TRIAL // Microsoft’s record first fiscal quarter coupled with a disappointing performance from Amazon has made the software giant the world’s second most valuable brand, according to a report.
Amazon went down $65 billion following its quarterly report, Reuters reveals, with Microsoft jumping from the third place to second in its adventure towards $1 trillion market valuation.
Apple continues to be the leading brand worldwide after previously breaking the $1 trillion threshold earlier this year.
Reuters reveals that Microsoft is now worth $823 billion, while Amazon dropped to $805 billion. If the same trend is maintained, the Redmond-based software giant is on track to become the second company worth $1 trillion.
Apple is also expected to increase its brand valuation thanks to the debut of new iPhones and its increased focus on services. Cupertino will release its earnings report next Thursday.
Microsoft to reach $1 trillion by 2020
Analyst forecasts indicated that Microsoft could be worth $1 trillion by 2020 or 2021 the latest, mostly thanks to its heavy focus on cloud.
Cloud services have become the main catalyst of the company’s growth, replacing Windows, which has been the leading product for more than a decade.
With substantial improvements in the cloud business, investments in enterprise, and updates to the Office 365 suite, Microsoft is well positioned to reach $1 trillion market valuation in around two years, analysts believe.
Amazon could also return to growth in the coming quarters, again thanks to its cloud offering. Microsoft and Amazon are currently two fierce rivals in this particular market, and both could be propelled towards $1 trillion market cap following their investments in this business.
Microsoft improved some 25 percent this year, while Amazon increased some 40 percent, according to the cited source. Despite the drop, Amazon is still valued by analysts at over $1 trillion.