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Microsoft (MSFT) stock price is moving higher pushing its way to new records. Will 2020 be a good year for the Redmond Washington software giant?
Microsoft Corporation (NASDAQ: MSFT) stock price is up now after a slight fall in the pre-market. This is occurring at a time when the software giant is growing by leaps and bounds. The COVID-19 pandemic has proven to boost Microsoft (MSFT) stock price. The reason for this is significant increases in several Microsoft business units.
At the time of filing this report, Microsoft (MSFT) stock is trading at $213.21 (+1.19%). It means that the stock is close to its record levels of around $214. It’s worth mentioning that Apple Inc (NASDAQ: AAPL) is setting new records these days as well.
Microsoft has everything going for it at the moment. One major reason for this is the rise in cloud services. Microsoft is one of the major players in the cloud industry. Microsoft CEO Satya Nadella indicated during the last earnings call:
“As COVID-19 impacts every aspect of our work and life, we have seen 2 years’ worth of digital transformation in two months. From remote teamwork and learning to sales and customer service to critical cloud infrastructure and security, we are working alongside customers every day to help them stay open for business in a world of remote everything”.
Microsoft Azure holds a 17% share in second place after Amazon Web Services (AWS). It could soon change as trends emerge that Microsoft is catering to particular niches differently.
Already, Azure revenues have grown by 59% as against last year. It makes it the fastest-growing cloud services provider in 2020 so far.
Azure’s allure stems from the hybrid computing options that it has available. The product is a favored enterprise option. So much so that 95% of Fortune 500 companies prefer it to others.
Something else is occurring within Microsoft. The company is quickly becoming an all-purpose software company. Rather than cater to any specific group of clientele. Microsoft has something for just about everybody when it comes to computing services.
This approach is also poised to provide an even spread of revenues for the software maker.
Microsoft Azure May Win in Long Run Pushing MSFT Stock Higher
If it comes to winning the cloud war, Microsoft is likely to be victorious from behind. A recent Goldman Sachs survey (before COVID-19) among top executives showed that Microsoft Azure was preferred over AWS.
There is a two-fold lead by AWS over Azure as per revenue. Azure had revenues of $4.33 billion as against $9 billion for AWS. That may not matter as Microsoft is playing for the long term. Azure has a greater cloud infrastructure spread than AWS. New Investments in Spain and Mexico in this quarter show massive investments in expansion.
Such moves are crucial for several reasons. Microsoft is looking into markets where the need for data is just beginning to grow. It gives it the early lead in those places. As content goes local, regulations will require cloud servers to allow for data exchange on a localized basis.
It puts Microsoft (MSFT) stock in the green.
Microsoft grew by $800 billion in the last 36 months. Intelligent Cloud revenues grew 42% to $11.6 billion. Business and productivity products rose by 38% to $11.3 billion. Microsoft’s (MSFT) personalized computing services’ revenues grew by 16% to $6.4 billion. These are the causative factors of the 150% increase in Microsoft (MSFT) stock price.
2020 may be the year that Microsoft (MSFT) goes super-nova. Everything is pointing in that direction!