June 3 (UPI) — Microsoft has also done well in recent years in the increasingly important area of cloud computing, beating Amazon, now the largest cloud computing service provider, in a 10-year, $10 billion cloud computing single competition last year, according tomedia reports. Analysts expect Microsoft’s cloud computing Azure revenue growth over the next few years to outpace that of a sizeable rival such as Amazon, pushing up Microsoft’s share price, which is expected to be worth more than $2 trillion.
Cloud computing is expected to boost Microsoft’s market capitalisation by more than $2 trillion, said Philip Winslow, an analyst at Wells Fargo Securities, in a note to clients.
Philip Winslow said in a report that he believes this year’s new crown outbreak will forever change the CLOUD strategy of CIOs, and they expect Microsoft Azure, an enterprise cloud computing service provider, to benefit.
Amazon is still the largest provider of cloud computing services in the global cloud computing market, but Philip Winslow says in his report that Microsoft is closing the gap with Amazon on cloud computing and widening its lead over Google Cloud, the world’s third-largest cloud computing service provider.
But not everyone is as bullish about the future of Microsoft’s cloud computing as Winslow, who is widely expected to see revenue growth in Microsoft’s cloud computing business slow to 42 percent in fiscal 2021 from 59 percent in the third quarter of fiscal 2020 and then to about 30 percent.
Philip Winslow agrees that while investors’ views of Microsoft’s cloud computing business, Azure, have shifted positively, they still believe that Microsoft’s multi-year growth potential for cloud computing is not properly reflected in valuations or share price valuations.
But Philip Winslow’s research shows that Microsoft’s cloud computing business has grown for years and will continue to grow for years to come, outpacing the growth of super-cloud computing competitors such as Amazon Cloud, Google Cloud and Alibaba Cloud, giving him confidence that Microsoft’s cloud computing will continue to grow at double-digit rates over the next three to five years, boosting its market capitalization by more than $2 trillion.
Philip Winslow said that if Microsoft’s market capitalisation reached 30 times the $68.2bn forecast for fiscal 2023, it would reach $2.2 trillion, or $283 a share.
In a note to clients on Tuesday, Philip Winslow maintained Microsoft’s stock to beat the broader market and raised his target price for Microsoft shares to $250 from $205.
At the close of trading Tuesday, Microsoft was trading at $184.91, up $2.08, or 1.14 percent, from the previous session, giving it a market capitalisation of more than $1.4 trillion.