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- A federal judge on Thursday approved Amazon application For the Department of Defense to stop working on the JEDI cloud contract that Microsoft won last year.
- Microsoft's shares fell by up to 1% on Thursday afternoon.
- The move erased $ 17 billion from the technology giant's market cap in a matter of minutes.
- Watch Microsoft trading live on Markets Insider.
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Microsoft shares fell sharply on Thursday afternoon immediately after a Federal judge ordered a temporary suspension of the JEDI contract Awarded to the company by the Pentagon last year.
The shares went negative within a few minutes, falling from $ 185.40 at 2:11 p.m. ET – an increase of 0.4% a day – to an intraday low of $ 183.16 at 2:16 p.m. The stock hit rock bottom shortly thereafter with a 1% loss.
In other words, the technology giant pulled $ 17 billion from its market cap in just five minutes.
According to Bloomberg data, Microsoft's market value is now $ 1.4 trillion. It is the third largest company in the world after Apple ($ 1.43 trillion) and Saudi Aramco ($ 1.77 trillion).
Amazon filed a motion last week to stop the Department of Defense from working on its key $ 10 billion corporate defense infrastructure contract. The task is to build a cloud for storing and managing sensitive military and defense data.
Microsoft won the contract through Amazon last year upset in a surprise, After losing Amazon challenged the Pentagon's decisionand accused the agency of having "clear flaws, mistakes and unmistakable prejudices" against the company.
"It is important to review the numerous valuation errors and apparent political interference that have affected the JEDI pricing decision," said a representative from Amazon Web Services Benjamin Pimentel from Business Insider, "AWS is determined to support the Department of Defense's modernization efforts and a speedy legal process that will resolve this matter as soon as possible."
Amazon's shares rose shortly after Thursday's announcement, but then turned negative.
Microsoft closed on Monday with a record high of $ 188.70 per share and has risen by around 16% since the beginning of the year.
(tagsToTranslate) Microsoft (t) Microsoft share (t) Microsoft share price (t) Amazon (t) Amazon share (t) Amazon share price (t) Jedi (t) JEDI contract (t) AWS (t) Microsoft Azure (t) t) MSFT