- Microsoft reached the 1$ trillion in stocks in the spring of 2019 but it took nothing short of 44 years to reach that landmark.
- According to Philip Winslow, a Wells Fargo Securities analyst, Microsoft will reach the next market cap of $2 trillion in only two years.
- Read more articles related to economics in our Stock Section.
- For more news about Microsoft, head over to our Microsoft News Hub.
Microsoft reached the 1$ trillion in stocks in the spring of 2019 but it took nothing short of 44 years to reach that landmark.
Now, according to Philip Winslow, a Wells Fargo Securities analyst, Microsoft will reach the next market cap of $2 trillion in only two years.
Microsoft’s share price is rising
If Microsoft is following the present trend and will raise its share price from $187.76 now to $283, the analysts, sais that the next trillion may come much, much sooner than it was expected.
Microsoft was recently valued at $1.42 trillion dollars.
According to Motley Fools, as more and more companies begin the digital transformation, Microsoft will continue to close the gap with AWS and widen its lead against Google Cloud.
If Microsoft continues its overall revenue growth of about 14% over the next few years while also generating EPS and free cash flow growth of about 17%, it will have a clear path to a $2 trillion valuation.
Generating 20% growth from its intelligent cloud segment, increasing its productivity and business process segment by 10%, and boosting just 3% from Windows will push it over the finish line.
Those segments increased in the first quarter by 27%, 15%, and 3%, respectively, so these estimates are by no means outlandish
, they added in their article.
Who is on the race to 2$ trillion?
Microsoft is not the only mega-company reaching for the 2$ trillion mark. Apple and Amazon are also very far in the race.
According to the same prediction, they will also reach the target in four and three years respectively.
Source: Motley Fools