Microsoft has officially entered the exclusive club on Tuesday, becoming the second US public company to reach a market cap of $2 trillion.
Its stock prices rose 1.1% and peaked at $265.51 per share, giving the company a closing market capitalization of $1.99 trillion. The company gains a $2 trillion milestone over two years after the company surpassed the $1 trillion market cap mark.
Microsoft hits the sky-high market cap in about ten months after tech giant Apple hits the mark in August 2020. Oil company Saudi Aramco, trading Saudi Tadawul exchange, has also passed the $2 trillion mark in 2019, but has a market cap of $1.88 trillion on Tuesday.
Covid-19 plays the main role in Microsoft’s reaching $2 trillion market cap. Lockdowns forced many to spend more time on their devices, raising demands for Microsoft’s computers, gaming systems, and cloud computing platforms.
Microsoft stocks are up, more than 64% during a pandemic. In April, the company put up a third-quarter profit of $14.8 billion, up 38% from last year. Profits for the quarter were up 19%.
Amazon and Google are also drilling to join a $2 trillion exclusive club. The market cap of Amazon is $1.76 trillion and Google reached $1.67 trillion.
“Over a year into covid-19, digital adoption curves are not slowing down. They are speeding up, and it’s just the beginning,” said CEO Satya Nadella at the time.