Amazon surpasses Microsoft to become the world's third most valuable company

Merchandise is scanned to be tracked as it moves through the new Amazon Fulfillment Center Friday Feb. 9 2018 in Sacramento Calif. The center opened in October 2017

Merchandise is scanned to be tracked as it moves through the new Amazon Fulfillment Center Friday Feb. 9 2018 in Sacramento Calif. The center opened in October 2017

However, Amazon is a strong contender as its long-running market rally continues unabated.

Amazon on Wednesday surpassed Microsoft's market value for the first time.

Amazon's shares rose more than 2.5 percent on Friday to close at $1,451.05.

Amazon is working to grab an ever-increasing share of the commerce pie, both online and in brick and mortar retail, and while Microsoft's ever-increasing cloud focus has delighted traders, Amazon has a growing reputation for great execution in whatever area it pursues which has attracted investors despite lack of significant profits.

"The dethroning of Microsoft by Amazon is not actually that surprising when you consider the phenomenal growth that Amazon has experienced, not just over the past decade but even over just the past year", said Fiona Cincotta, Senior Market Analyst at City Index. Near midday Thursday, Microsoft shares were at $90.80. The company is now valued at $699.22 billion on Wednesday's close.

However, although this marks a significant milestone for Amazon, it remains some way off those in front of it, with Alphabet valued at $745.1bn and Apple closing in on $1tn, now standing at $849.2bn.

At the moment, only two companies are worth more the Amazon.

"Bezos took the wealth crown earlier this year from his Seattle neighbor and Microsoft co-founder Bill Gates", the Post reported. Microsoft's 41 percent increase in the past 12 months was not enough to offset the online retailer's meteoric rise.