Microsoft is closing gap with Amazon in cloud computing, both stocks are attractive investments

From Nasdaq: 2024-09-25 18:32:58

Cloud computing has been a rapidly growing sector dominated by Amazon and Microsoft. Amazon Web Services holds 31% of the global market and remains the most profitable segment for Amazon. Microsoft Azure, with a 25% market share, has been closing the gap with well-integrated AI offerings. Both stocks are attractive investments in high-demand industries.

Amazon stock has gained 26.8% YTD, sitting at a market cap of $2.02 trillion and trading at 33.4x forward 2025 earnings estimates. Wall Street rates it as a “strong buy” with a price target of $225.43, implying 16.8% potential upside. Amazon continues to expand its cloud services and diversify into advertising and e-commerce.

Microsoft stock, valued at $3.18 trillion, has gained 14.8% YTD with Azure showing strong growth. Wall Street also rates it as a “strong buy” with a price target of $502.94, implying 16.4% potential upside. Azure’s deep relationships with enterprises and strategic AI integrations make Microsoft an attractive long-term investment.



Read more at Nasdaq: Can Microsoft Dethrone Amazon as the Leader in Cloud Computing?