Bekker's Blog

Blog archive

Analyst Bets on Microsoft To Reach $1 Trillion Market Cap

Could Microsoft's cloud strategy, partner channel and customer base help it vault ahead of its tech rivals to become the first trillion-dollar company?

Apple, Amazon and Alphabet (Google) have been front-runners in investor speculation about which company could be first to reach the psychological milestone of a trillion-dollar market capitalization.

Attention around the question peaked near the market's recent top in January and has settled considerably as stocks have fallen since. In addition, Facebook, which had been a little further back in the market cap sweepstakes, has completely worked its way out of the conversation in the midst of its recent storm of controversy over data privacy that has severely affected the stock price.

An analyst at Morgan Stanley revived the tech market cap question on Monday with a high-profile note to clients predicting Microsoft will reach a $1 trillion market cap within 12 months.

"Strong positioning for ramping public cloud adoption, large distribution channels and installed customer base, and improving margins support a path to $50 billion in EBIT and a $1 trillion market cap for MSFT," said Morgan Stanley's Keith Weiss in a note quoted by CNBC.

Shares of MSFT rose more than 5.5 percent after Morgan Stanley's note.

Here are the companies' relative market caps, according to Yahoo! Finance:

  • Apple: $854 billion
  • Amazon: $734 billion
  • Alphabet (Google): $712 billion
  • Microsoft: $710 billion
  • Facebook: $453 billion

Posted by Scott Bekker on March 26, 2018 at 11:11 AM


Featured

  • Microsoft In Talks To Acquire TikTok

    A deal between Microsoft and Beijing-based ByteDance is in the works that would have Microsoft acquiring some of ByteDance's holdings in the TikTok social media service.

  • Some Cortana Features Ending as Part of Microsoft 365 Shift

    Microsoft may be promoting Cortana more as a Microsoft 365 business perk, but the digital assistant will soon see several of its capabilities falling out of support.

  • 2020 Microsoft Conference Calendar: For Partners, IT Pros and Developers

    Here's your guide to all the IT training sessions, partner meet-ups and annual Microsoft conferences you won't want to miss. (Now updated with COVID-19-related event changes.)

  • Tasks in Teams Starts Rolling Out to Some Microsoft 365 Users

    Tasks in Teams, which pulls together information from Microsoft task-creation apps like Planner and To Do, has started rolling out to "a small group" of Microsoft 365 users.

RCP Update

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.