Microsoft will soon be worth $1 trillion
Yes, trillion with a ‘T’… is what many believe Microsoft will be worth after the company’s latest earnings results. Analysts have taken notice, raising price targets from $123 to $130 – to be worth $1 trillion Microsoft’s share price would need to hit $130.16.
Here’s how they are doing it… the company has shifted from selling software to a subscription-based cloud model. Azure cloud, business subscription to Office 365, and Dynamics 365 software were responsible for 25% of the company’s total revenue, up 3%. And not only is the cloud business growing, it appears to be adding to older products, such as Windows, rather than hurting it.
But there are concerns… such as whether Azure can reach the same level as Amazon Web Services (AWS). AWS was performing better when it was the same size as Azure is now. In other words, just because AWS has been a huge success does not mean Azure will do the same. We’re not saying that won’t happen – but don’t start counting your trillions of dollars just yet, Microsoft.