Amazon climbs into the top three, ousting out Microsoft as its market value and services increase.
Amazon has knocked Microsoft off its pedestal by becoming the US’ third-largest company by market capitalisation.
The US tech company surpassed Microsoft after its stock price rose 2.6% to $1,451.05, a record for the company. This lifted its market cap by a staggering $17.69bn to $702.46bn. In comparison, Microsoft’s shares increased by 1.6% lifting its market cap to $10.78bn with its overall value finalising at $699.22bn.
It was not the first time Microsoft had been overtaken by Amazon. At the start of the month Amazon overtook its fellow Silicon Valley giant briefly in intraday trading, but then its stock fell by 3% moving it back down to fourth place. Now, the online retailer has regained its short-lived third place with a much larger increase.
The company has been making waves among the technology industry over the last few months. Amazon has introduced its Internet of Things (IoT) ‘Amazon Go’ store, as well as opening a new factory in the UK hiring 400 new workers which have inevitably helped boost its share price among the industry.
Amazon has also tapped into shopping with Alexa, after introducing the voice assistant to Ocado shoppers to make the experience much easier. Amazon’s IoT services have also expanded into Government organisations and local councils, as Alexa powers devices for DVLA and councils to help assist residents in the area.
Despite competition in the field, from the likes of Microsoft and Oracle, Amazon hopes to boost its market position further. The company has recently announced it will be working with JP Morgan as well as starting to offer free two-hour delivery, boosting its online services.
Only Apple and Alphabet now sit above Amazon, with Apple topping the list with an $849.2bn market cap and Alphabet following in second place with a market cap at $745.1bn. Microsoft now sits fourth ahead of Tecent and Facebook, which means the top 6 largest companies have all descended from the technology industry.