Microsoft, founded in 1975, became one of the world’s most valuable companies through software, cloud computing, and enterprise services.
The company was established by Bill Gates and Paul Allen and first became widely known for licensing operating-system software. Windows and Microsoft Office built a huge global customer base, while products such as Azure, Dynamics, LinkedIn, and Xbox broadened the business.
Azure’s growth was particularly important to Microsoft’s market capitalization because cloud computing created a large recurring-services market. Investors value not only current earnings but also expected future cash flows, so the company’s transition toward cloud and subscriptions influenced its long-term valuation.
Microsoft’s market cap is sometimes confused with the value of its software installed worldwide. Installed copies, revenue, and equity value are different measures. The market-cap figure changes whenever Microsoft’s publicly traded share price changes.