Business & Investment

Microsoft Revenue: SolarWinds Hack May Be Good For Azure

Microsoft Corp. was involved in a major cybersecurity attack late last year, but unprecedented intrusions could actually benefit the company’s bottom line.

UBS analyst Carl Carrstead said he has a buy valuation and a $ 243 price target.
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The product is Solar Winds Corp.Used by hackers in the attack
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Orion IT management software “The broader cybersecurity community doesn’t point to Microsoft,” because they are so commonplace.

Keirstead was actually attacked by this attack on Azure and Amazon.com Inc. Many customers have been pushed into public cloud infrastructure such as.
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AWS and Alphabet Inc.
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Google Cloud said, “Cloud data centers are highly secure, and constantly patching / updating on-premises software such as Orion poses a security risk that could be transferred to Microsoft, Amazon, or Google. I’m waiting.”

“In conclusion, we believe this cybersecurity attack could be a modest net plus for Microsoft,” said Keirstead.

Analysts said Microsoft’s Intelligent Cloud segment, including its Azure public cloud platform, generated $ 13.77 billion in revenue, up 16% from the same period last year when Microsoft reported second-quarter revenue after the bell on Thursday. I expect to bring it.

Microsoft does not specify a amount and only analyzes the rate of increase in Azure from the same period last year. Azure profit was 59% in the first quarter of 2021, 47% in the fourth quarter of 2020, 59% in the third quarter, and 62% in the second quarter of last year.

What to expect

Revenue: Of the 28 analysts surveyed by FactSet, Microsoft is expected to generate an average of $ 1.64 per share. This is up from the $ 1.61 per share forecast at the beginning of the quarter and the $ 1.51 per share reported in the second quarter of the previous year. Estimize, a software platform that uses crowdsourcing from hedge fund executives, brokerage firms, buy-side analysts and more, wants to earn $ 1.69 per share.

Revenue: Wall Street expects to generate $ 40.23 billion in revenue from Microsoft, according to 25 analysts surveyed by FactSet. This is down from the $ 40.48 billion forecast at the beginning of the quarter, but up from the $ 40.72 billion reported in the year-ago quarter. Estimize expects to generate $ 40.72 billion in revenue.

Inventory movement: The Dow Jones Industrial Average rose 10.2%, while Microsoft stocks rose 5.8% in the last quarter of December.
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It includes Microsoft as a component.Similarly, the S & P 500 Index
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Nasdaq Composite Index, a technology-intensive company, up 11.7%
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It increased by 15.4%.

What analysts are saying

Keith Weiss, an analyst at Morgan Stanley, has overvalued and set a price target of $ 260, and investors may look to Microsoft’s headwinds, given the delay in stock prices in the software sector. I see a chance. Microsoft’s share price has risen 35% in the last 12 months, but iShares has expanded its technology-software sector ETFs
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43% growth

“Once the tough second quarter product cycle comps have been cleared and the impact of COVID has been prolonged, strong aging positioning and attractive multiples will make MSFT the top stock of recovery,” Weiss said. Analysts at Morgan Stanley predict that Azure will grow 41% in the second quarter and 41.6% in fiscal year 2021.

City Research analyst Walter Pritchard has set a purchase rating and a $ 272 price target, headwinds in Microsoft’s gaming business, and the continued strength of PCs for server and office licensing. I expect to make up for my weaknesses.

“There are positive settings around Microsoft’s key top-line indicators, and Azure growth indicators and forward Azure numbers rise here after strong contract signing and signs of consumption,” said Pritchard. There is a high possibility that it will be done. “

Mizuho analyst Greg Moskowitz has set a purchase rating and a $ 255 price target, with Azure growing 48% year-over-year.

“We argue that Azure will become more powerful and MSFT will continue to gather an impressive collection of cloud assets to drive the overall strong growth of companies of that size,” Moskowitz said. ..

Of the 33 analysts covering Microsoft, 31 have a purchase rating and two have a pending rating, with an average target price of $ 248.19, according to FactSet data.

Microsoft Revenue: SolarWinds Hack May Be Good For Azure

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