Last updated on December 8th, 2022 at 02:13 pm
Pandemic spurs demand Azure cloud services
Wells Fargo Securities analyst Philip Winslow shared interesting insights. According to him, Microsoft may become the first company in the world whose market capitalization exceeds the threshold of $ 2 trillion. The analyst believes that the share price will rise by 55% from the current level (and now Microsoft is worth about 1.39 trillion US dollars), as a result, the treasured mark of 2 trillion will be overcome.
Coronavirus will help Microsoft become the first company in the world worth $ 2 trillion
As a driver of this growth, Philip Winslow points to the demand for Azure cloud services. And its growth was spurred by the pandemic raging now: cloud services correspond to the current “spirit of the time” more than ever.
Winslow also noted that Microsoft is “closing the revenue gap” between Amazon’s industry-leading web services and at the same time expanding its number three advantage over Google’s market player, Google Cloud. “Although investors are clearly positive about Microsoft Azure, we believe that the long-term impact of Azure’s growth potential is still not properly reflected in consensus or stock valuations,” the analyst said.
If Microsoft’s revenue will grow by 14% annually, which is likely against the backdrop of a growing interest in Azure services, then by 2023 the company will not just surpass the $ 2 trillion mark – its market capitalization will reach 2.2 trillion.
