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Microsoft has become the second company to reach a market valuation of $3 trillion, closing on market capitalization for the first time today, just after laying off 1,900 workers from its gaming divisions.
It crossed the $3 trillion mark for the first time yesterday, but fell below it again before the markets closed before rising again and closing today at $3.01 trillion, or $404.87 per share. It is the second company to reach this milestone, after Apple, which achieved it in December of last year and has since been competing with Microsoft for the moniker of most valuable company on Wall Street. As The Verge points outMuch of the buzz around Microsoft stock comes from a recent dedication to artificial intelligence announcements, with numerous new product announcements significantly boosting the stock from week to week.
This stock win comes on the same day that Microsoft laid off 1,900 workers from its gaming division, in some ways a massive domino effect from the company’s $69 billion acquisition of Activision Blizzard last year. . Many of the affected workers came from Activision Blizzard divisions, including several from a now-canceled survival game. Chief gaming officer Phil Spencer described the layoffs as part of “a strategy and execution plan with a sustainable cost structure that will support the entirety of our growing business.” Blizzard Entertainment president Mike Ybarra also announced that he would be leaving the company.
Almost exactly a year ago, Microsoft laid off 10,000 people across all of its divisions, including some of its gaming divisions. In its most recent earnings (released in October 2023 and covering the quarter ending September 2023), Microsoft reported $56.5 billion in revenue, up 13% year over year, and revenue from content and Xbox services increased 13% year over year. The company is expected to release its 2023 annual earnings next week.
Rebekah Valentine is a senior reporter at IGN. Do you have any story tips? Send it to rvalentine@ign.com.