Microsoft became the third company to reach a market cap of $1 trillion, behind fellow tech giants Apple and Amazon who achieved the status in 2018, when its stock rose by up to 4.5% in after-hours trading on April 24. The celebration was short-lived, however, as later in the afternoon its value fell just below the landmark level to settle at around the $998bn mark.
Its current valuation means that Microsoft has once more overtaken Apple as the world's most valuable company.
Microsoft's jump in stock price came after it reported a revenue of $30.8bn and a net income of $8.8bn for the third quarter of its 2019 financial results which was chalked up to its cloud growth. The company has been heavily pushing its bevy cloud products of late as it aims to square up to Amazon's AWS which currently dominates the market.
Under CEO Satya Nadella, the software company has spent the last few years reimagining itself as a leader in the cloud market, which is tipped to be worth $411bn by 2020, according to research from global communications provider CenturyLink and Statista.
"Computing experiences are evolving to include multiple senses and are no longer bound to one device at a time but increasingly spanning many as we move from home to work and on the go," Nadella told Forbes in an interview last year.
"These modern needs, habits and expectations of our customers are motivating us to bring Windows, Office, and third-party applications and devices into a more cohesive Microsoft 365 experience."