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Microsoft Joins Trillion Dollar Club

Paul Rubens - April 26, 2019 - 05:30 AM
Microsoft Joins Trillion Dollar Club
The company's value has skyrocketed over the last year, thanks in no small part to its cloud services division.

(CCM) — Microsoft's value on the stock market hit $1 trillion on Thursday, joining an elite group of companies to have done so which includes Apple, Amazon, and PetroChina.

The company's value has skyrocketed by a third over the last twelve months, according to a BBC report, largely on the back of its Azure cloud business. In the last quarter alone the company's net profits leapt almost 20% to $8.8 billion.

The company once relied on its Windows operating system for much of its revenues, but this now accounts for just 18% of its sales. Its Office productivity software has overtaken Windows, accounting for about 25% of total sales, the report says.

The company has many other sources of revenue, including cloud services, its Xbox game console division, own-brand hardware such as the Microsoft Surface tablets, and even its Bing search engine, which now powers smart speakers including Amazon's Alexa, the report adds.

This is in sharp contrast to Apple, which derives more than 50% of its revenues from sales of iPhones, and Amazon, which relies heavily on its online store to generate cash.

The news will be seen by many as an endorsement of Satya Nadella, Microsoft's chief executive, whose strategy over the last five years has been to lessen the company's reliance on Windows by moving more towards the provision of services which bring in recurring revenue streams.

Image: © StockStudio - Shutterstock.com

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