Ever since Microsoft has shifted focus from consumer products to money-making services such as Azure and Office 365, the company has become a money-making machine. Under CEO Satya Nadella, the company has achieved surprising growth in the last fiscal year, and it’s likely that the impressive performance would continue.
The money-machine company Microsoft is becoming 1$ trillion worth because of the growth it has achieved in the last fiscal years. By late 2019 or early 2020, Microsoft will be $1 trillion worth (market capital), this is the result of impressive performance.
The figures were calculated by analyst Richard Davis from Canaccord, who says “If you believe, as we do, that it is reasonable to expect MSFT to appreciate between 10-20% annually for the next five years, you get to the Big T as early as calendar Q4 2019, or more like sometime in early 2020.”
The analyst expects Microsoft to increase its capital market with help of Office 365 which would play a bigger role in total revenues. Microsoft’s cloud services and CRM would will perform well despite the competition. Microsoft could become the first technology company to reach $1 trillion capital market value but only if Apple fails.
The analysts were expecting Apple to hit $1 trillion as soon as this year but it appears that this wouldn’t happen until 2019 despite the iPhone X launch as the revenues were below expectations. David isn’t the only research to forecast Microsoft’s worth, Evercore last year estimated that Microsoft’s capital market would reach $1 trillion. With that being said, if the same growth continues Microsoft would reach $1 trillion market value, and the credit goes to enterprise services.