Microsoft Corp returned its second position among the US most valuable companies after Amazon’s disappointing quarterly report wiped out 65 billion USD of the market capitalization of the online retailer.
Apple is still the leader with market value of over 1 trillion USD, after crossing the threshold in September. Microsoft’s market capitalization was the highest on Wall Street from the end of 1998 to the beginning of 2000, before the bursting of the com balloon.
Amazon’s stock price declined by 7%, which is the company largest depreciation in nearly three years, as sales forecasts during the holiday season are below announced targets, and this has raised fears that Wall Street technology vendors are starting to feel stronger competition.
Microsoft’s share price dropped by only 2% against sales of the technology sector, triggered by the weaker than expected finance statement of Alphabet Inc. The technology index Nasdaq lost 2.1% of its value during the session.
Microsoft’s stock rose by 4% on Wednesday, when the 40-year-old software company surpassed its quarterly earnings expectations with its cloud business.
The company’s market value on Friday reached 823 billion USD, while Amazon’s value reaches 805 billion USD.
Despite the decline, Amazon has increased its value by about 40% since the beginning of the year, while Microsoft added about 25%.
The average target price for Microsoft sets its market capitalization at 963 billion USD, and the average target price for Amazon estimates it at 1.068 trillion USD.
Apple will announce its finance results for the quarter next Thursday.