Microsoft becomes second most valuable American company, overtaking Amazon
Microsoft has overtaken Amazon to become the second most valuable American company, once again. The company, which lost the spot back in April, dethroned Amazon after reporting a profitable quarter driven by its cloud computing business. Amazon, on the other hand, reported a disappointing third quarter, losing $65 billion from its market capitalization. Here are more details.
Microsoft's value well ahead of Amazon
Back in September, Amazon struck the $1 trillion mark in terms of market cap, but since then, its shares have declined by 20%. Microsoft's, on the other hand, have risen by 13% - from a close of $95 on May 1 to $106.5 on Friday. As of Friday, the company's stock market value stood at $823 billion, well ahead of Amazon's $805bn valuation.
Amazon's lowest price-to-earnings ratio since 2011
On Wednesday, Amazon's price-to-earnings ratio also dropped to 70, the lowest level since 2011. This means that the company's shares traded at 70 times the earning expected per share.
However, Apple is still on top
Apple, which became the first company to cross the $1 trillion valuation mark in August, is still on the top. As per PhoneArena, the company's shares have risen 4.4% since then, but the final figures for Apple's quarter are still to be revealed. Microsoft's shares, on the other hand, would need to rise by 22% to reach the one trillion dollar valuation.
