With a market capitalisation of more than $1 trillion, Microsoft has spent 44 years. But some analysts believe Microsoft could break through the next trillion dollars much faster. Microsoft’s market valuation is now $1.42 trillion after crossing the $1 trillion threshold in April 2019.
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Philip Winslow, an analyst at Wells Fargo Securities, believes Microsoft’s market value will top $2 trillion over the next two years, with its share price rising to $283 from $187.76 today.
Not only has Microsoft’s $2 trillion market capitalisation been propping up, not only the fast-growing cloud business, which has gained a lot of market share from Amazon, and other businesses that have grown considerably. Media Fool wrote
Trends suggest that no cloud strategy is a failure of many businesses. As more and more companies begin digital transformation, Microsoft will continue to narrow the gap with AWS and expand its competitive edge with Google Cloud.
If Microsoft continues to grow about 14 percent of its overall revenue over the next few years, while achieving about 17 percent earnings per share and free cash flow, it will have a clear path to a $2 trillion valuation.
Smart cloud business esthewhere grew 20 percent, productivity and business process business grew 10 percent, and Windows grew 3 percent, and these business growths helped Microsoft achieve that goal. These segments grew by 27%, 15% and 3%, respectively, in the first quarter, so these estimates are no surprise.