Microsoft leapfrogs Exxon to become world's second most valuable company

November 16:

Microsoft leapfrogs Exxon to become world's second most valuable company

MICROSOFT has surpassed Exxon Mobil to become the world's second most valuable company, placing it behind Apple which retains the number one spot. 

On Friday, Microsoft saw its market value increase to around $410bn, according to statistics from Interbrand, while oil corporation Exxon Mobil, which was previously the second-most valuable company, saw its market cap falter to around $400bn.

This saw Microsoft regaining the title as the world's second most valuable company.

This surge in Microsoft's value is thought to be largely due to the changes implemented by the firm's new CEO Satya Nadella, with the company's stock value increasing 30 percent increase over the past 12 months. 

The turnaround in the Microsoft's fortunes was evident in its fiscal first quarter earnings, released in October, which saw it posting $4.5bn in profit and surpassing Wall Street estimates with $23.2bn in revenue.

The firm talked-up a number of success stories during the three month period. This includes a 47 percent increase in its Devices and Consumer division due to bumper sales of the Xbox One andSurface Pro 3, a 10 percent increase in Windows licensing and a whopping 128 percent increase in commercial cloud revenue. 

Daniel Ives, analyst at FBR Capital Markets told the Associated Press that Microsoft's success has done a better job than its competitors, including IBM, HP and Oracle, at surviving the declining PC market. 

Since taking over as head of the company, Nadella has also made some drastic cost-cutting decisions, whichincluded the axing of 18,000 employees and the culling of Nokia's Android handset division.

Apple holds onto the number one spot in the 'world's most valuable' list with a value of $668.2 billion, so it's unlikely the firm is too worried about Microsoft catching up just yet. µ

Source: m.theinquirer.net/inquirer/news/2381705/microsoft-leapfrogs-exxon-to-become-worlds-second-most-valuable-company