Microsoft Leapfrogs Amazon as the Second Most Valuable Company in the U.S.

Microsoft Corp. took back its position as the second most valuable company based in the U.S. on Friday after a disappointing earnings report for the quarter by Amazon wiped off $65 billion from the market capitalization of the online retail behemoth.

Apple Inc. is the most valuable on the list with a market cap of more than $1 trillion after it crossed that threshold last month. The market cap for Microsoft was the highest on Wall Street back in 1998 and through 2000 prior to the bubble bursting on the dot-com industry.

Amazon shares fell by 7%, which is the most in close to three years following its sales outlook for the holiday season that came up short of expectations, fanning worries that the tech darlings on Wall Street are beginning to face tougher competition.

Microsoft was down just 1.1% in a broad sell-off of tech that was driven as well by a weaker than had been expected quarterly report from Alphabet Inc. the parent of Google.

Microsoft shares remain nearly 4% up since Wednesday, when the software giant that has been in existence over four decades beat expectations for quarterly profit driven in part by its business of cloud computing that is a direct competitor of Amazon Web Services.

The Friday stock market value for Microsoft was $823 billion giving it second place on the list for the first time in six months when it was overtaken from the second spot in market capitalization by Amazon.

Amazon is currently worth $805 billion after falling below Microsoft during extended trading on Thursday and then into Friday regular trading. The drop was equal to the combined values of Corning Inc. and Target Corp.

The tumble by Amazon left it up close to 40% year to date. Microsoft has increased 25% during 2018. Amazon’s stock on Wednesday traded at what is equal to 70 times its expected earnings, its lowest point since 2011.

Microsoft’s average price target set by analysts puts it at a $963 billion market cap, while the price target established by analysts for Amazon has the online giant valued at just over $1.067 trillion.