In a Pacific Northwest battle to be the world's second most valuable company – potentially reaching a market value of…
In a Pacific Northwest battle to be the world’s second most valuable company – potentially reaching a market value of 1 trillion dollars – Microsoft Corp is about to take over Amazon.com Inc. on Friday.
AMZN, + 7.09%
has been No. 2 to Apple Inc.
AAPL, + 2.19%
and even briefly flirted with a market value of $ 1
billion in early September, but an October tech stock swoon, Seattle e-commerce sent giant valuation to $ 869.2 million at the end of Thursday’s trading. This valuation seems to be heading towards a healthy trim on Friday, as Amazon shares fell by 7.4 percent in after-trade after the quarterly earnings report.
If this decline was held, Amazon would be overcome by Microsoft
MSFT, + 5.84%
who received a 5.8% gain in Thursday trading after announcing revenues one day before Amazon. Microsoft finished Thursday’s session with a market share of $ 831.5 million, according to FactSet; if Amazonian’s expected decline is going to be, it would be worse than $ 810 million.
Apple became the first company to peak the $ 1 billiard barrier in August and knocked out Amazon. Amazon peaked the brand in a single intraday trade in early September, but has never closed a session with the high of a valuation. Several analysts expect Microsoft to ultimately reach $ 1 billion as it continues to successfully fight Amazon in cloud computing while enjoying the benefits of cloud software and its old personal computer manufacturing.
Microsoft’s share price needs up to $ 130 at current stock levels to reach $ 1 trillion. A dozen analysts have price targets for Microsoft at $ 130 or higher. The average price target for more than 30 analysts followed FactSet from Thursday afternoon was $ 125.69.
Amazon would need up to $ 2,050 per share to approach a $ 1 billion valuation. Prior to changes in response to Thursday’s performance report, the average price target on the Amazon share was from more than 40 analysts who tracked the company $ 2,212.98. Only five of these analysts have targets lower than $ 2,050 per share.