Microsoft's Cloud segment is getting a significant boost from the JEDI contract.
Microsoft is likely to build on the strength of this large contract as potential customers see the company as a go-to firm for cloud solutions.
The company's above-average growth can be sustained for multiple years.
Microsoft's (MSFT) achievement of being awarded the $10 billion JEDI (Joint Enterprise Defense Infrastructure) contract gives the company strong credibility for their cloud solutions. This achievement should help Microsoft attract other potential customers as the demand for cloud grows.
The cloud computing market size is expected to grow at a CAGR of 29.2% by 2025. So, Microsoft has a good chance of gaining business in the cloud space as the company strengthens and adds to its portfolio of large customers. As a result, the company is likely to achieve double-digit revenue and earnings growth for multiple years.
The article is for informational purposes only (not a solicitation to buy or sell stocks). David is not a registered investment adviser. Kirk Spano is an RIA. Investors should do their own research or consult a financial adviser to determine what investments are appropriate for their individual situation. This article expresses my opinions and I cannot guarantee that the information/results will be accurate. Investing in stocks involves risk and could result in losses.
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