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Microsoft is the second company ever to be worth $4 trillion. The company that brought you Clippy has now joined Nvidia in the $4 trillion market cap club, and, like Nvidia, it has AI to thank. Microsoft hit the milestone yesterday as investors digested its earnings report, which showed 18% revenue growth. The company also reported that annual revenue from its Azure cloud computing unit jumped 34% from its previous fiscal year, taking in more than $75 billion. But as with the rest of Big Tech, investing in AI requires a lot of cash, and Microsoft said it plans to spend $30 billion on AI infrastructure next quarter.
Apple’s quarterly revenue grew by the most since December 2021. With iPhone sales up by 30% and sales in China rising 4%, Apple blew past Wall Street’s expectations when it reported its Q3 earnings yesterday, as overall sales hit $94 billion, about 10% higher than in the same period a year ago. Though tariffs cost Apple $800 million, they also helped spur sales as consumers raced to buy new tech before higher prices kick in. The other member of the Magnificent Seven to report earnings yesterday, Amazon, didn’t leave investors impressed. Amazon also reported better-than-expected numbers, with revenue and profit both up. But the e-commerce giant’s stock fell in after-hours trading because its cloud business wasn’t growing as rapidly as its rivals’, leaving investors worried its AI investments weren’t paying off enough.
Figma jumps more than 250% in trading debut. Sometimes you lose a $20 billion merger opportunity but still win in the end. Design software-maker Figma’s stock soared on the NYSE after it sold $1.2 billion worth of shares for $33 each in an IPO, giving it a value above the amount it had agreed to sell itself to Adobe for before the deal fell apart in 2023. The stock rose so fast that trading had to be halted for volatility. The company’s success is a good sign for the tech IPO market, which had been in a lull for the past few years but has seen a few other buzzy debuts recently, like Circle and Chime.—AR
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