Facebook and Microsoft see £37bn added to their combined valuation

Facebook and Microsoft see a combine  £37.1bn ($53bn) added to their stock valuation, as £51.5 bn  ($73 bn) wiped out off the joint valuation of  Apple and Amazon. Large valuation swings in tech is because of investors wanting to move their money out of maturing technology markets and   into newer ones with better potential growth, as Cloud computing and mobile advertising industries are booming.

Internet trader Amazon’s shares shot up by 9 per cent on 28th January 2016 in anticipation of strong results, but plunged 13 per cent in the after-market trading  when the profit announced was 35 per cent, well below Wall Street’s expectations.

Microsoft’s  Azuer, cloud computing business who also disclosed their earning on 28th January 2016 which competes with AWS reported a 140 per cent leap in revenues, added to Wall Street’s growing confidence that the new chief executive  48 year old Satya  Narayana Nadella  born in Hyderabad, India, has finally found a new formula that will take them past beyond the PC era.

According to  Nadella ” The enterprise cloud market is massive, bigger than any other market, we have been in.”

Apple investors faced with the prospect of iPhone sales falling for the first time, are nervous. But Facebook, thanks to the large number of smartphone users and their increasing use of Facebook services, advertisers are now redirecting a major proportion of their budgets to mobile, accelerating the social networking company’s growth.