Microsoft's not-so-sudden leap can be attributed to the fall of Amazon while Apple comfortably roars at the top spot
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The race for the survival of the fittest has been going on ever since the world came alive. While FANG is a new term in the American market to talk about the top companies including Facebook, Amazon, Netflix and Google, the older ones are not far behind. The battle of US tech superpowers is not new to the world. It has been going on with a close run among the giants wherein one is always on the verge of beating another, overpowering it and at the same time, so vulnerable to the dynamic changes in the market that it slides back and can slump in the later positions anytime.
Clash of the Titans
Two of US’ most powerful tech giants, Microsoft and Amazon had been in the race for quite some time. And finally, Microsoft surpassed the e-commerce scion and emerged victorious to become America’s second most valuable company. This alteration in the ranking list of Wall Street’s market capitalization is not sudden. However, the battle between the two has been apparent since long. Microsoft is much older than Amazon as an establishment. However, with the onset of social media and internet wave, Amazon got leverage in the tech market. Microsoft has not been far behind, it has been among the elite US companies but in terms of positioning, it is not wrong to say that Microsoft has struggled a bit.
When the Online Bubble Burst
Microsoft’s market capitalization was on top of Wall Street’s board in the last part of the 20th century and early 21st century. The software giant was comfortably the indisputable king of Wall Street until the online bubble burst.
The change comes after Amazon was punished by investors on Friday by erasing $68.1 billion market capitalization. Microsoft’s leap is not sudden or wondrous, it can all be attributed to the 20% fall in Amazon’s share price. It was this move that pushed the tech titan to surpass the online trading platform.
According to the stock market, Amazon was sitting at $805 billion on Friday after the slide behind Microsoft which was at $823 billion. Apple still remains at the top with a hard to compete for $1 trillion.
A Tale of Ups and Down
The shopping giant has been in the news for a while now. Disappointing sales and dipping prices have made it imperative for Amazon to pull up its socks now to roar back into action.
It is here important to applaud Apple for sticking in the race for so long. The feat clinched by the Steve Jobs founded company has been one on which it has been sitting on for long. It was in August 2011 that Apple first bagged a spot in the valuable company list. And since then the radar has only gone up. Apple is slated to show its quarterly results on Thursday.