Microsoft’s continuing transformation into a cloud services company seems to be paying off handsomely. Today, the firm’s shares soared to over $60, setting a new all-time intraday record in the process – and various analysts now appear firm in their beliefs that Microsoft is making a big comeback.
The stock has flown on the back of an earnings report in which Microsoft smashed expectations. The company’s intelligent cloud division – including Office 365, the premium subscription package for the Office productivity suite – amassed revenue of $6.4 billion in the third quarter, representing 8% year-on-year growth. Meanwhile, the cloud computing business Azure’s revenue saw year-on-year growth of 116%.
As reported by MarketWatch, UBS analyst Brent Thill remarked that Microsoft’s cloud transition is “delivering some big benefits”, while various firms including UBS, Deutsche Bank, Wunderlich Securities, Raymond James, RBC Capital and Nomura raised their price targets for Microsoft stock.