Microsoft Corporation (NASDAQ:MSFT) has recently made sufficient advances in terms of stock price, but how far can this rally go? Daniel Ives, an analyst at FBR Capital Markets was asked a similar question on an interview on Fox Business, and in his opinion the stock was headed even higher.
“[…] This [Microsoft Corporation (NASDAQ:MSFT)] could be joining the over $55 community as a stock because ultimately if you look at the multiple as it kind of expands, you get that cloud vision, you can add 30 to 40 cents earnings next year. It’s a combination of a fundamental story that is really starting to blossom, and I know there is a Renaissance happening under Nadella […],” explained Ives.
By bringing the tech giant up to date with the current technological trends, namely the Cloud, Microsoft Corporation (NASDAQ:MSFT)’s CEO, Satya Nadella, has indeed initiated a Renaissance in the company. According to Ives, the company suffered badly during a decade of its ex-CEO, Steve Ballmer’s rule, who is also one of the biggest shareholders in the company. Hopefully, he doesn’t have a lot of say in the company’s operations.
Moreover, Ives also identified another potential direction, in which Microsoft Corporation (NASDAQ:MSFT) could be heading. It is the smart phone business. Although the company has a presence in this business, but its share remains substantially small, both in terms of the contribution to the company’s top line, and also the market share.
The smart phone market is mostly dominated by Samsung and Apple, but if Microsoft Corporation (NASDAQ:MSFT) can kick its numbers even a little bit it would mean a lot going forward.
“[…] The Golden Goose is, can they be successful with consumers? Smart phone 3% market share can get it to 6% to 7%, that is where the extra fuel in the engine is, if they are successful that would really be the 180 degree turn around,” said Ives.
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