Microsoft Market Capitalization Crosses $2 Trillion During Tuesday's Trading Session

Microsoft has officially joined the list of corporations with a market value of over $2 trillion.

The American tech giant is only the second publicly traded American company, behind Apple, to attain such a high valuation. Saudi Aramco, a Saudi-owned oil company, which went public in 2019, passed that mark in the past, although it has dropped from that position. As of Thursday, its market cap was $1.88 trillion.

Microsoft's market capitalization exceeded $2 trillion during trading hours on Tuesday, although it dropped by about $300 million later in the day. Its stock(MSFT) climbed as high as $266.51, a growth of 1.1% from its previous price. This took the company's valuation to $2 trillion, just two years after it first passed the $1 trillion valuation point - indicating massive growth.

This growth is largely due to the impact of the Covid-19 pandemic, which forced everyone indoors and pushed people to spend more time with their devices. This translated into a boost in demand for Microsoft's computers, gaming systems, and cloud computing products, which lifted the company's shares.

Microsoft's stock has gained about 64% since March 2020, when pandemic lockdowns began going into effect in the United States.

In April, Microsoft reported that sales were up by 19% year-over-year to stand at $41.7 billion for the three months ended March 31.

"Over a year into the pandemic, digital adoption curves aren't slowing down," CEO Satya Nadella said in a statement at the time. "We are building the cloud for the next decade, expanding our addressable market and innovating across every layer of the tech stack to help our customers be resilient and transform."

Apple's market value passed $2 trillion in August 2020 and is currently at $2.24 trillion. 

Microsoft has now joined its ranks, with the two other major tech corporations, Amazon (AMZN) and Google (GOOGL GOOGLE), chasing at their heels. Amazon's market cap hit $1.77 trillion on Tuesday, and Google parent Alphabet's reached $1.67 trillion.

Share Prices

Microsoft (MSFT) : $265.51 (+2.88)

Google (GOOGL) : $2,446.61 (+10.36)

Apple (AAPL) : $133.98 (+1.68)

Amazon (AMZN) : $3,505.44 (+51.48)