Original title: Microsoft CorpThere is still room to rise after the market capitalization exceeds 2 trillion yuan. Analysts estimate that it is no problem to increase the stock price by more than 20%.
Source: FX168
The market capitalization of Microsoft Corp broke through 2 trillion US dollars on Tuesday, becoming the second largest market value for Apple Inc.After that, Dan Ives, an analyst at Wedbush, a private investment firm in Los Angeles, the second US listed company with a market capitalization of more than $2,000bn, believes that even after the $2,000bn milestone, Microsoft Corp still has plenty of room to rise.
Microsoft Corp's share price rose as high as $265.79 on Tuesday, with a market capitalization of more than $2,000bn at one point, before falling slightly to close at $265.28 on Wednesday, while to stand above $2,000bn, the share price would need to reach $265.55. Apple Inc's market capitalization exceeded $2,000bn in August last year, after Saudi Aramco, the Saudi oil giant, briefly reached its target of $2,000bn, but the company now has a market capitalization of about $1.9 trillion.
In a report on Wednesday, Ives said the continued growth of Microsoft Corp's cloud computing operating system Azure could help push Microsoft Corp's share price up another 23 per cent from current levels. Ives raised Microsoft Corp's target price to $325 from $310 and reiterated its "buy" rating on the stock.
Since the outbreak of COVID-19, there has been a wave of telecommuting around the world. as the epidemic slows down, many Wall Street analysts expect demand for cloud services to slow, but Ives takes the opposite view, believing that Microsoft Corp's cloud business will be bright again this season.
Ives said that it seems that Microsoft Corp's Office 365 and Azure transaction traffic will still be strong in fiscal year 2022, and the company has many other money-generating tools. According to statistics, there are more than 1 billion devices using the Windows operating system worldwide.
According to a report released in April by market research firm Canalys, the global market for cloud infrastructure services grew by 35 per cent to $41.8 billion in the first quarter of 2021, breaking the $40 billion mark for the first time. Among them, Amazon.Com IncAWS leads with 32% of revenue, followed by Microsoft Corp Azure's 19% Cloud with 7%. Ives said he expects Azure to steal some market share from Amazon.Com Inc's AWS in the future.
If Microsoft Corp's share price rises to what Ives calls $325, Microsoft Corp's market capitalization will reach about $2.5 trillion. It took 30 years for the company to reach a market capitalization of $1,000bn, while it took only two years for the company to reach $2,000bn, so Microsoft Corp jumped to $2,000bn at an extraordinary speed.