Microsoft: The Cloud Computing Stock to Watch, According to Analysts

Microsoft Corporation (MSFT) has been making waves in the tech industry, particularly in the cloud computing sector. With a strong market presence and a growing user base, Microsoft's cloud services have caught the attention of analysts, who believe that MSFT is the cloud computing stock to watch. In this article, we will explore the reasons behind this bullish sentiment and examine the role of Microsoft's strategic acquisitions in its cloud growth.



Microsoft's cloud market share is the second-largest among its competitors, with a 20 percent share in the third quarter of 2024. This places Microsoft behind Amazon Web Services (AWS), which holds a 31 percent share, and ahead of Google Cloud with an 11 percent share. Together, these three companies account for over 60 percent of the global cloud market. Analysts have observed a growing market share for Microsoft, with the company closing the gap with AWS over time. While Microsoft's cloud market share has been growing steadily, it has not experienced the same level of volatility as some of its competitors, indicating a stable and strong position in the market.



Analysts believe that Microsoft's strategic acquisitions, such as LinkedIn and GitHub, have played a significant role in its cloud growth. These acquisitions have not only expanded Microsoft's customer base but also provided it with valuable data and technology that can be leveraged to enhance its cloud services. For instance, LinkedIn's vast professional network and data can be used to improve Microsoft's productivity and business processes segment, while GitHub's platform can be integrated with Azure to offer better developer tools and services. Additionally, these acquisitions have helped Microsoft to strengthen its position in the cloud market by providing it with a competitive edge over its rivals.

Microsoft Azure's strategic alliance with OpenAI is another significant driver of analysts' bullish sentiment. This collaboration opens the door for customers to access advanced AI models, such as the GPT models, which can lead to increased adoption and revenue growth. Microsoft's strong financial performance, coupled with Azure's growth, contributes to analysts' positive outlook on the company's cloud computing stock.

In conclusion, Microsoft Corporation (MSFT) is the cloud computing stock to watch, according to analysts. With a strong market share, growing user base, and strategic acquisitions, Microsoft is well-positioned to continue its cloud growth. As the company continues to innovate and expand its offerings, investors can expect to see a positive impact on its stock price.