Microsoft's cloud platform Azure is rapidly growing in market share and revenue, driving the company's success.

From Nasdaq: 2024-07-20 10:05:00

When Satya Nadella took over as Microsoft’s CEO in 2014, he transformed the company into a “mobile first, cloud first” powerhouse. Under his leadership, the company’s revenue grew at a CAGR of 10% and EPS at 16%, with a massive stock rally of nearly 890%.

Azure, Microsoft’s cloud platform, has become a dominant force in the cloud computing market, propelling the company to a market capitalization of $3.3 trillion and second-most valuable company status.

Azure’s market share grew from 14% to 26% globally, challenging AWS’s dominance. Its revenue growth accelerated to 31% in Q3 2024, driven by AI workloads and integrations.

Analysts project Microsoft’s revenue and EPS to grow at a CAGR of 15% and 17% from fiscal 2023 to fiscal 2026, making it an attractive investment in cloud, AI, and gaming markets. Azure’s expansion and market share gains showcase Microsoft’s continued momentum.

Considerations for investing in Microsoft include the company’s impressive growth but also the competition in the cloud market. The Motley Fool’s Stock Advisor recently highlighted 10 top stocks for investors, showcasing potential beyond Microsoft.

Source: Nasdaq, Inc.



Read more at Nasdaq: Microsoft Is Riding a Cloud Computing Surge. Can Investors Capitalize on Azure’s Market-Share Growth and Artificial Intelligence (AI) Momentum?