The race to become America’s first trillion dollar publicly owned company already has a strong pack in the lead. With Apple, Amazon and Google in the forefront, it looks like it could be anyone’s ballgame right now. And according to Morgan Stanley, people need to look out for Microsoft. The tech giant’s current market value stands around $700 billion. Which means that if Microsoft wanted to enter the trillion dollar club, its stock would need to hit almost $130 and Morgan Stanley thinks that is doable over the next three years. What would propel the company over that edge? Microsoft cloud.
Analysts are anticipating the cloud market will grow 23% by 2021, leaving Microsoft with a wide open door to capitalize with. The company’s Azure cloud platform is projected to hit $21.6 billion in 2020, with it being just a shade under $4 billion in 2016. That’s quite a jump, and quite a steady and quick climb. That means other companies looking to be the first trillion dollar publicly owned company may need to heed warning, or find a similar reliable growth strategy.
But, it’s not just Microsoft’s cloud technology that is projected to see growth. Morgan Stanley also predicts that the amount of Office 365 subscription users will double by 2020, which would increase Office 365 revenue from around $10 billion to $25 billion. That’s another huge jump for the company that has been competing with giants like apple for quite some time now. Will it be enough to catapult Microsoft into history-making mode? According to Morgan Stanley, it seems very likely. But, only time will tell.
