Next stop for Microsoft: $1 trillion?

Don't count out Microsoft in the race to $1 trillion.Apple, the most valuable company in America, is already v...

Posted: Mar 27, 2018 6:46 AM
Updated: Mar 27, 2018 6:46 AM

Don't count out Microsoft in the race to $1 trillion.

Apple, the most valuable company in America, is already valued at about $850 billion. Amazon and the parent company of Google are each above $700 billion.

So is Microsoft. And analysts at Morgan Stanley say the company could hit $1 trillion in market value within a year.

Morgan Stanley's new price target for Microsoft is $130 a share. That would be 45% higher than where the stock closed on Friday and enough to clear the trillion mark.

Microsoft stock soared almost 7% Monday because of the Morgan Stanley report. That helped push the Dow to a gain of more than 400 points.

The Morgan Stanley analysts are incredibly bullish on Microsoft's cloud computing units, such as the Office 365 software suite and the Azure hosting business.

Related: Amazon tops Google as second most valuable company

Amazon and Google are also big players in the cloud market. IBM, Salesforce, Cisco, Adobe and Oracle made big bets on it, too.

But Microsoft has been one of the biggest beneficiaries of the cloud revolution ever since it replaced former CEO Steve Ballmer with the company's cloud guru, Satya Nadella.

The Morgan Stanley analysts, citing results of a recent survey of chief information officers, found that big companies expected to shift more of their tech budgets to cloud services from Microsoft, Amazon and Cisco in particular over the next few years.

Microsoft still has many other business lines, of course. It owns the Xbox gaming hardware and software. And it recently made a big splurge on social networking by purchasing LinkedIn.

But Wall Street thinks Nadella's big push into the cloud is what will keep Microsoft's sales and profit growing at a nearly 10% clip for the next few years.

And Morgan Stanley isn't the only investment bank predicting that Microsoft is on the verge of a $1 trillion market valuation, either. An analyst at Evercore ISI made that call last December, also citing the company's cloud strength.

Minnesota Coronavirus Cases

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Cases: 486434

Reported Deaths: 6575
CountyCasesDeaths
Hennepin1009131586
Ramsey43165803
Dakota36375392
Anoka33335388
Washington22121258
Stearns18752201
St. Louis14822263
Scott13308107
Wright12538116
Olmsted1181788
Sherburne874172
Carver775640
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Rice670791
Blue Earth596635
Kandiyohi579674
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Otter Tail483270
Benton447790
Winona418549
Mower405731
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Goodhue386269
Polk343763
McLeod340049
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Morrison324747
Itasca313646
Lyon313644
Becker312542
Isanti306756
Steele301511
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Pine282016
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Todd248330
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Lincoln5092
Grant4918
Norman4788
Unassigned44568
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Kittson40921
Red Lake3625
Traverse3075
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Cook1180

Iowa Coronavirus Cases

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Cases: 335218

Reported Deaths: 5443
CountyCasesDeaths
Polk51785551
Linn19463313
Scott17080210
Black Hawk14924292
Woodbury13778212
Johnson1312174
Dubuque12416194
Dallas1019092
Pottawattamie9828143
Story959345
Warren511674
Clinton500784
Cerro Gordo498882
Webster494487
Sioux479169
Marshall463072
Des Moines427161
Muscatine424191
Buena Vista412237
Wapello4025108
Jasper386266
Plymouth367478
Lee354252
Marion339869
Jones284654
Henry279637
Bremer268754
Carroll266349
Crawford252235
Boone242830
Benton240354
Washington239047
Mahaska215246
Jackson209738
Dickinson202440
Tama202365
Kossuth198055
Delaware185540
Clay183825
Winneshiek182827
Fayette178635
Page177819
Buchanan176929
Wright173831
Hamilton173742
Cedar171523
Hardin169439
Harrison167169
Clayton159854
Butler158831
Mills147920
Floyd147741
Poweshiek147730
Lyon145541
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Allamakee142347
Madison141918
Iowa139423
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Jefferson128334
Appanoose123147
Louisa122341
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Union118731
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Howard99021
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Ida81032
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Greene72910
Lucas71421
Osceola68215
Worth6667
Taylor64112
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Van Buren53718
Ringgold50520
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