Microsoft unseats Amazon in race toward $1 trillion valuation

Microsoft surpassed Amazon as the U.S.’s second-most valuable company on Friday after weak quarterly results wiped billions off the e-commerce giant’s market capitalization.

Amazon shares fell more than 7 percent in trading after its third-quarter revenue grew at a slower pace than Wall Street expected. The Seattle-based company also projected fourth-quarter sales that fell short of expectations. Microsoft shares were roughly flat in trading.

Microsoft had a valuation of $807.5 billion as of Friday, according to FactSet data. Amazon, which has lost about $65 billion in value over the last week amid a broader market sell-off, had a valuation of about $795 billion.

Both tech giants trail Apple, which currently ranks as the most valuable company in the U.S. The iPhone maker became the first U.S. company to achieve a $1 trillion market cap last August. Amazon briefly surpassed $1 trillion in September, but its market capitalization has since retreated.

Microsoft is now more valuable than Amazon for the first time since last April.

Amazon’s shares slid alongside broader weakness in U.S. markets. The Dow Jones Industrial Average fell by more than 200 points in Friday trading on weak earnings results from tech leaders, including Amazon and Alphabet. The S&P 500 slid more than 1 percent and briefly entered correction territory.