Microsoft became the second company ever to reach a market valuation of $3 trillion, closing in on the market cap for the first time today, shortly after laying off 1,900 employees from its gaming divisions.
Yesterday it passed the $3 trillion mark for the first time, but fell below again before the market closed before rising again to close today at $3.01 trillion, or $404.87 per share. It is the second company ever to reach the milestone, after Apple, which achieved it in December last year and has since competed with Microsoft for the moniker of Wall Street's most valuable company. As The Verge notes, much of the hype around Microsoft stock is due to the company's recent focus on AI announcements, with numerous new product announcements boosting the stock significantly from week to week.
This stock rally comes on the same day that Microsoft laid off 1,900 employees from its gaming division, in what is in some ways a massive fallout from the company's $69 billion acquisition of Activision Blizzard, which completed last year became. Many of the affected employees came from Activision Blizzard divisions, including some from a now-cancelled survival game. Gaming boss Phil Spencer described the layoffs as part of “a strategy and execution plan with a sustainable cost structure that will support our overall growing business.” Mike Ybarra, president of Blizzard Entertainment, also announced he would be leaving the company.
Almost exactly a year ago, Microsoft laid off 10,000 employees across all areas of the company, including some from the gaming departments. In its most recent earnings (released in October 2023, covering the quarter ending September 2023), Microsoft reported revenue of $56.5 billion, up 13% year-over-year, and an increase in sales of Xbox content and services by 13% year-on-year. The company is expected to report its full-year 2023 results next week.
Rebekah Valentine is a senior reporter for IGN. Do you have a story tip? Send it to [email protected].