Mar 27, 2018, 5:47pm PDT
Microsoft Corp.’s cloud business could propel the company to a $1 trillion market capitalization within one year, Morgan Stanley analyst Keith Weiss predicts.
The investment bank raised its price target for Microsoft to $130 from $110. Microsoft stock opened around $95 on Tuesday. Microsoft has the fourth-largest market capitalization, behind Apple ($880 billion), Amazon ($757 billion) and Google parent Alphabet ($722 billion). The Redmond-based company’s fast-growing cloud business could help it catch up. MARCUS R. DONNER
Microsoft CEO Satya Nadella is betting big on the cloud. CEO Satya Nadella led reorganized the company last summer to align under the cloud. The reorganization included a sales force shift to make sales people more technical and customer-focused and help the company compete with Amazon in the highly lucrative cloud computing market, which research firm Gartner expects will reach $306 billion this year. Microsoft sales teams have become so technically adept that they can write code for the products they’re selling. Former Microsoft Chief Technology Officer Jim DuBois, who left during the reorganization, told the Business Journal recently the reorganization was necessary to remain a major player in the cloud space.
“As Microsoft is transforming and becoming more of a cloud company and less of a licensed software company,” he said, “they’re having to transform all parts of the company and look at how to be different for a cloud world.”
Meanwhile, the company is planning a major headquarters renovation to attract top talent to Redmond. Emails and documents recently obtained by the Puget Sound Business Journal revealed new details about Microsoft’s multibillion-dollar Redmond headquarters renovation plan, including an aggressive timeline.
Ashley Stewart Staff Writer – Puget Sound Business Journal