Microsoft Corp. gained for a fourth day, climbing back above the coveted $1 trillion level in market value amid a broader rally in tech megacaps.
Shares rose as much as 3.5% to $132.25, reaching a record intraday high in New York trading Friday. The rally pushed Microsoft’s market capitalization to $1.01 trillion, the first time it’s climbed above the 13-digit mark since briefly touching that level in April.
Microsoft has fared better than most of its largest tech peers this week, as the possibility of Alphabet Inc. and Facebook Inc. facing antitrust reviews from U.S. agencies and renewed concerns over trade disputes spooked traders. Microsoft has gained almost 7% in the past five sessions, while Google parent Alphabet fell 3.5% and Facebook lost 2.9%. Apple Inc., which also initially fell on antitrust concerns Monday, recovered to gain nearly 9% this week.
“Management noted Microsoft is better positioned than ever to maintain wallet share of customers through an economic downturn, given the broader budget exposure beyond IT,” Piper Jaffray analyst Alex J. Zukin wrote in a June 5 note. “However, they indicated they were not seeing any signs of an economic slowdown nor any weakness in the economy.”
Zukin is among the 36 analysts with a buy-equivalent rating on Microsoft’s stock, while one rates it a hold and two recommend selling, according to data compiled by Bloomberg. The average price target of $143 suggests another 8.7% in upside returns from the stock’s current price.
“We continue to very much have a ‘buy it and forget it’ mentality on the stock right now as the company appears to be in midst of secular fundamental growth,” Zukin wrote.