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Analyst 'Absolutely Certain' Azure Will Beat Out AWS Within 5 Years

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Analyst 'Absolutely Certain' Azure Will Beat Out AWS Within 5 Years

Microsoft Corporation (NASDAQ: MSFT) shares are trading mostly flat on Friday morning after the company reported Q1 adjusted EPS of $0.73 on revenue of $23.6 billion. Microsoft’s reported numbers were mostly in line with consensus estimates of $0.70 and $23.6 billion, respectively.

According to Global Equities Research analyst Trip Chowdhry, Microsoft Azure’s 93 percent growth rate was the most impressive number on the quarter.

“MSFT is best positioned to capture and create opportunities in the post-smartphone era, with its success in deep learning/machine learning,” Chowdhry wrote in a note to clients.

Analyst's Take

In fact, Chowdhry believes Microsoft is well-positioned to take over the top spot in cloud computing services from Amazon.com, Inc. (NASDAQ: AMZN) in the long term.

“MSFT Azure is the new Windows — we are absolutely certain that within 5 year, MSFT Azure will overtake AMZN AWS,” he explained.

In addition, Chowdhry said Microsoft has more than 11 million developers worldwide, the largest developer ecosystem in the tech world.

Microsoft’s “intelligent cloud” revenue came in at $6.76 billion in Q1, ahead of consensus estimates of $6.60 billion.

Looking ahead to Q2, Microsoft is guiding for intelligent cloud revenue of between $7.2 billion and $7.4 billion.

Microsoft shares are up 9.8 percent so far in 2017.

Related Links:

Amazon's Q1 Signals Competitive Pressures For AWS

A Question Of When, Not If: Amazon And The $1 Trillion Market Cap
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Image Credit: "Microsoft developer David Cutler at work on Windows Azure" By Majorconfusion (John P. Beck) [CC BY 3.0 (http://creativecommons.org/licenses/by/3.0)], via Wikimedia Commons

Latest Ratings for MSFT

DateFirmActionFromTo
Jan 2021Goldman SachsInitiates Coverage OnBuy
Dec 2020CitigroupUpgradesNeutralBuy
Dec 2020B of A SecuritiesReinstatesBuy

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