In a fortuitous moment, Microsoft shot temporarily above Amazon to take the spot as the second most valuable company in the world. The moment came after a Q3 earnings report from Microsoft and a corresponding dip in Amazon's value.
Late last night, Amazon shares fell by 10%, putting it at a market cap of $799 billion versus Google's $737 and Microsoft's $812. Amazon has since recovered to $869 billion, making it second once more.
The results follow an impressive last quarter for Microsoft, while Amazon failed to impress investors. Though it reported a 29% revenue increase, the company predicted its sales between $66.5 and $72.5 bn during the final quarter, below what was expected. It also reported that it's operating profits in Q4 could be as low as $2.1 billion.
Meanwhile, Microsoft's fiscal first-quarter results broke its records. Revenue totaled $29.1 billion over the last three months, an increase of 19 percent year-on-year. Net income reached $8.8 billion over the last period, an increase of 34 percent compared to the same timeframe last year.
Analysts predicted revenue of $27.9 billion, so it blasted those predictions out of the water. Again, Microsoft saw a large growth in its cloud business, while Surface, Xbox, and Windows OEM Pro also saw increases.
Office commercial products revenue increased an impressive 17 percent, with Office 365 commercial revenue growing 36 percent. Office 365 now boasts 155 million active users, with 32.5 million consumer subscribers.
In all, Microsoft seems to have a lot of potential for growth. It's possible we'll see it take back the second spot later in the year, though all are behind Apple, which currently has a cap of 1.04 trillion.