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Microsoft joins Apple in $2 trillion market cap club

Demand for Microsoft's products has soared since the pandemic forced many people to stay home.

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Steven Musil Night Editor / News
Steven Musil is the night news editor at CNET News. He's been hooked on tech since learning BASIC in the late '70s. When not cleaning up after his daughter and son, Steven can be found pedaling around the San Francisco Bay Area. Before joining CNET in 2000, Steven spent 10 years at various Bay Area newspapers.
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Steven Musil
2 min read
Microsoft headquarters

Microsoft's stock is up 64% since the pandemic forced people to work and learn remotely.

Jason Hiner/CNET

Microsoft joined an exclusive club on Tuesday, becoming only the second US public company to reach a market capitalization of $2 trillion.

The company hit the threshold as shares rose as much as 1.2% before sliding back a little to close at $265.51, up 1.1%, and giving the company a closing market cap of $1.99 trillion. The milestone comes two years after the company surpassed the $1 trillion market cap mark.

Microsoft hit the lofty market cap roughly 10 months after fellow tech giant Apple hit the mark in August 2020. Apple currently has a market cap of $2.23 trillion.

Oil company Saudi Aramco, which trades on the Saudi Tadawul exchange, surpassed the $2 trillion mark on its second day of trading in 2019 but had a market cap of $1.88 trillion on Tuesday.

Microsoft's shares have been boosted, in part, by the pandemic. As lockdowns forced many to begin working and learning remotely more than a year ago, demand has increased for Microsoft's software and cloud computing services. Since stay-at-home orders went into effect in March 2020, Microsoft's stock is up more than 64%.

In April, Microsoft posted a third-quarter profit of $14.8 billion, up 38% from the same period last year. Revenue for the quarter was up 19%.

"Over a year into the pandemic, digital adoption curves aren't slowing down," Microsoft CEO Satya Nadella said in a statement at the time. "They're accelerating, and it's just the beginning."

Amazon and Google are also gunning to join the $2 trillion club. Coming in at No. 3 on the list of largest tech companies by market cap is Amazon, with a $1.76 trillion valuation, followed closely by Google's $1.67 trillion.