Amazon is officially the third most valuable company in the United States.
The retail giant surpassed Microsoft's market capitalization for the first time on Wednesday, reaching $ 702.5 billion.
Amazon and Microsoft are leaders in their respective industries - Microsoft in Office and Productivity Software and Amazon in Retail. But the two companies are in direct competition in the cloud and the business sector is booming for both companies.
Amazon earlier this month reported financials on its activities in the cloud for the first time. Amazon Web Services reported revenue of $ 17.4 billion in 2017, an increase of 43% from $ 12.2 billion in 2016.
At the same time, Microsoft said Azure's year-on-year sales rose 98 percent and its revenue was from "smart cloud," a segment comprising Azure, of $ 7.8 billion last quarter.
The Amazon, meanwhile, has almost quadrupled in value over the past three years. The company has allocated 10% of the total revenue to AWS.
Amazon's market capitalization was 702.5 billion US dollars on Wednesday night; Shares of the company traded US $ 8.65 (0.6%) to US $ 1459.70 late Thursday. Microsoft was worth $ 699.2 billion after the market closed on Wednesday.
Amazon is still behind Apple, with a value of US $ 849,200,000,000, and the alphabet, Google's parent company, which is US $ 744,800,000,000 on Wednesday. Microsoft is currently in fourth place.
At the end of the market on Wednesday, CNBC named Amazon CEO Jeff Bezos, the richest man of all time, beating Microsoft founder Bill Gates, who had an estimated US $ 100 billion fortune in 1999. Bezos owns 78.9 million shares of Amazon stock, and currently has an estimated net worth of US $ 118 billion, according to the Bloomberg Billionaire index.
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