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Microsoft officially became the third company to reach a market value of $ 1 trillion, after the tracks of Amazon and Apple.
The investment landscape is once again turning to the big tech stocks. After a steep decline last year, 2019 was a recovery for the broader market. It's not just Microsoft – Apple and Amazon have grown by 30% and 27% respectively this year.
Technological boom
Facebook, Netflix and Alphabet are also experiencing a significant increase in the price of their shares in 2019.
The decline in 2018 was mainly due to concerns over a stock market crash. The main concerns of last year were whether technology companies could continue to add users and drive sales in a slowing global economy. As 2019 has proven, it seems that they can do it. As these concerns begin to fade, technological actions are in full swing.
Microsoft's temporary achievement of a $ 1 billion market capitalization is primarily due to its transformation into a cloud computing giant.
Microsoft Transformation
For a long time, Microsoft was primarily badociated with personal computers. They licensed the Windows platform and other relevant software, generating revenue. However, over the last 5 years, Microsoft has become the leader in cloud computing technology. Its subscription-based business model is also shown to be extremely profitable.
Called Microsoft Azure, the technology giant's cloud computing platform rivals Amazon. It has become the largest in the industry in the last year.
However, Microsoft is nevertheless looking to the future with a new interest not only for cloud computing, but also for artificial intelligence (AI). Microsoft's research on AI is closely linked to another emerging technology on which it is working secretly: blockchain technology.
As part of Microsoft Azure, users can already develop, test, and deploy "secure blockchain applications" through the Microsoft platform. Microsoft has been offering this service since 2018 and believes that its cloud computing service may even be migrated to such a decentralized model.
Although large technology stocks are booming in 2019, the question of whether they will be able to keep pace with the evolution of technology remains unresolved. As the blockchain and AI become basic building blocks of the digital economy, we could begin to meet new players among the largest technology companies, or even leading losers.
Do you think that technology giants are facing a major upheaval in the years to come? Let us know your thoughts in the comments below.
Image reproduced with the kind permission of Shutterstock.
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