leadf
logo-loader
viewMicrosoft Corporation
(
NASDAQ:MSFT
)

Microsoft tipped for bumper quarter as cloud adoption accelerates

Headline numbers should comfortably beat the market’s US$44bn and $1.90 estimate.

Microsoft Corporation - Microsoft tipped for bumper quarter as cloud adoption accelerates

Microsoft Corporation (NASDAQ:MSFT) recently became only the second company (after Apple) to be valued at more than US$2trn and analysts expect the tech titan to underline its status with bumper June results.

Driving its growth is its Azure cloud business and results tomorrow are expected to reveal another huge performance from the division.

Broker Wedbush expects Azure growth numbers to be 45% plus year-on-year and for Redmond-based Microsoft to exceed whisper expectations with headline numbers that comfortably beat the market’s US$44bn and $1.90 per share estimate.

Azure’s deal sizes continue to increase markedly as enterprise-wide digital transformation shifts are accelerating with CIOs all focused on readying their respective enterprises for a cloud-driven architecture, says Wedbush.

"We believe the Street's view of moderating cloud growth on the other side of this 16 month WFH cycle is contrary to the deal activity MSFT is seeing in the field with a robust June quarter likely around the corner."

Wedbush believes Azure's cloud momentum is still in its early days of playing out within the company’s massive installed base and the Office 365 transition for both consumer/enterprise is providing growth tailwinds over the next few years.

The broker predicts enterprise workloads on the cloud will increase from 40% today to 45% by the end of 2021 and 55% by 2022.

"Microsoft remains our favourite large-cap cloud play and we believe the stock will start to move higher over the coming quarters as the Street further appreciates the cloud transformation story in Redmond."

Outperform with a $325 price target is the broker's view.

Quick facts: Microsoft Corporation

Follow
NASDAQ:MSFT

Price: 294.47 USD

Market Cap: $2.21 trillion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Klondike Gold extends mineralization at the Lonestar Zone by 250 metres to East

Klondike Gold CEO Pete Tallman joined Steve Darling from Proactive to bring more drill results from the Lone Star Zone on the Klondike District Property. Tallman saying the company completed 12 holes totalling 1,222 meters. The company is seeing, in these latest results, that the near-surface...

42 minutes ago

2 min read