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James Li
James Li
Articles (775)  | Author's Website |

Bill Gates’ Microsoft Leapfrogs Amazon as 2nd-Largest US Company

Top US companies trade lower for the week

According to the “Mega Caps” predefined screener, Bill Gates (Trades, Portfolio)’ Microsoft Corp. (NASDAQ:MSFT) leapfrogged Jeff Bezos’ Amazon.com Inc. (NASDAQ:AMZN) as the second-largest U.S. company in terms of market cap on Friday.

With a market cap of $1.0347 trillion, Apple Inc. (NASDAQ:AAPL) remains the largest U.S. company. Microsoft comes in second with a market cap of $780.354 billion.

Microsoft rises to number two as Amazon falls on weak fourth-quarter earnings guidance

Online retail behemoth Amazon’s market cap tumbled to $757.108 billion, down approximately $23,246.05 million from Microsoft’s market cap following the release of fourth-quarter earnings guidance that disappointed investors.

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The Seattle-based company expects net revenues of $66.5 billion to $72.5 billion for the fourth quarter, which reflects an unfavorable impact of approximately 80 basis points from foreign exchange rates. Although the revenue guidance represents a 10% to 20% increase compared to revenues from the prior-year quarter, the guidance fell short of the consensus estimate of $73.79 billion according to CNBC columnist Eugene Kim, who further said the guidance might show “a slight deceleration of growth” in the company’s business ahead of the all-important holiday season.

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Dow ends volatile week with 300-point nosedive

The Dow Jones industrial average traded approximately 300 points lower, finishing the week with the fourth three-digit loss over the past five days. Table 1 illustrates the index price trend since Oct. 19.

Date

Dow Close

Dow Change

10/19/2018

25444.34

 

10/22/2018

25317.41

-126.93

10/23/2018

25191.43

-125.98

10/24/2018

24583.42

-608.01

10/25/2018

24984.55

401.13

10/26/2018

24688.31

-296.24

Table 1

The top five companies in terms of market cap all closed lower for the day. As Table 2 illustrates, Amazon led losses with a 7.82% nosedive, followed by Google parent Alphabet Inc. (NASDAQ:GOOGL), which tumbled 2.06%. Warren Buffett (Trades, Portfolio)’s conglomerate, Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B), declined 1.97% while his top holding, Apple, declined 1.59%.

Symbol

Company Name

Current Price

Change (%)

MSFT

Microsoft Corp.

106.96

-1.34 (-1.24%)

AAPL

Apple Inc.

216.3

-3.50 (-1.59%)

BRK.B

Berkshire Hathaway Inc.

198

-3.98 (-1.97%)

GOOGL

Alphabet Inc.

1,080.88

-22.71 (-2.06%)

AMZN

Amazon.com Inc.

1,642.81

-139.36 (-7.82%)

Table 2

Disclosure: No positions.

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About the author:

James Li
I am an editorial assistant and researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

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