Amazon.com (NASDAQ:AMZN) is on pace to surpass Microsoft (NASDAQ:MSFT) in market capitalization for the first time.
Amazon’s worth hit $710 billion Friday afternoon, just above Microsoft’s $708 billion market cap. This would make Amazon the third-largest U.S. company by market cap, dropping Microsoft into fourth place.
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Amazon’s rise in market value came Friday as shares were climbing in the aftermath of the company’s big earnings beat.
The e-commerce giant clearly benefited from the record holiday shopping season, with the company earning $3.75 a share compared to the $1.54 a share it earned during the same period a year ago. The results included a one-time benefit of $789 million from tax-reform legislation.
Revenue rose to $60.45 billion from $43.74 billion, and CEO Jeff Bezos acknowledged that the company was able to “far exceed” its “very optimistic” 2017 projection.
Microsoft reported results on Wednesday. They also surpassed expectations.