Microsoft leapfrogs Exxon to become second largest firm

The Redmond based tech huge, Microsoft, this year has surpassed Exxon Microsoft_logo_ITVoiceMobil in the stock market and seized the position of world’s second most valuable company behind Apple Inc., which is at first position. According to statistics from Interbrand, the company saw a commendable increase in its market value to around $410bn that had leapfrogged Exxon’s value of $404 billion which was affected mainly due to the drop in oil prices.

Under the leadership of new CEO Satya Nadella, Microsoft stock value had seen a rise of 30 per cent within past 12 months, largely because of changes implemented by him. Nadella has made some drastic cost-cutting decisions after taking up his position in the company and had made the company to refocus on its mobile technology and cloud computing.

The firm had shared one after another success stories during the last three months, including 47 per cent rise in its devices and consumer segment due to abundant sale of the Xbox One and Surface Pro 3, another one about the 10 per cent increase in Windows licensing and also a massive 128 per cent increase in commercial cloud revenue.

Daniel Ives, tech analyst at FBR Capital Markets said,Microsoft has made a strategic change.” He noted that the company had done a better job as against its competitors including IBM, HP and Oracle, in serving the declining PC market in spite of several challenges. He told, “Microsoft has done the best job of trying to skate where the puck is going.”

Nadella’s new initiative about expanding cloud computing is expected to be more lucrative in comparison to the traditional model of selling software which is installed in customers’ computers. Investors have been pleased by Nadella’s emphasis over web based service and also about his efforts to undo Windows 8 mistakes.

Filed in: Business, Case Study, News

Related Posts

Bookmark and Promote!

© 2020 ItVoice | Online IT Magazine India. All rights reserved.
Powered by IT Voice