HomeTECHNOLOGYMicrosoft’s Market Cap Reached $2.3 Trillion After ‘Raise’ Announcement
Microsoft’s Market Cap Reached $2.3 Trillion After ‘Raise’ Announcement
August 24, 2021
With a statement made this morning, Microsoft caused an increase in market and share values. The statements of the company announcing that it will raise its Office 365 products will have sent the message that “developments are coming” to the investors, as the market value of the company reached an all-time high shortly after the announcement.
Announcing that it will increase the price of Office 365 products, Microsoft’s shares took flight. Microsoft’s price per share exceeded $304, while the total value of the company reached $2.3 trillion.
After Microsoft, one of the most valuable companies in the world, announced last week that it will increase subscription fees for its major products, the company’s shares entered the week with a record rise.
Microsoft shares passed $ 304 on the first business day of the week, while Microsoft’s market value reached $ 2.3 trillion.
Microsoft stock has gained 37 percent so far this year.
While Microsoft has left many rival technology companies behind with this rising trend, Google, which is in competition, has gained 60 percent in value so far.
Google’s top company, Alphabet, has a market value of $1.9 trillion.
The leader in this field is Apple. Apple’s market capitalization is close to $2.5 trillion.
According to the data of the fiscal year we left behind on June 30, Office 365 products provided 18% of Microsoft’s revenue last year. Many analysts’ estimates for Microsoft were high from last year, but the estimates were updated with the price increase announcement. Experts say Office 365 products will make a huge contribution to Microsoft’s revenue this year. According to the company’s statement, Office 365 E Premium prices will increase by 9% per user every month. This change will take effect on March 1, 2022. In addition, the Office 365 E1 package price will increase by 25%.
Share values, which climbed after Microsoft’s Office 365 announcements, closed Monday with $304 per share. The company’s market capitalization reached an all-time high of $2.3 trillion. Microsoft is one of the companies that has grown the most year over year in the market. The company has grown by 37% since the beginning of the year, and according to analysts, this growth will continue.