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What Do Analysts Think of Microsoft Stock?

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Microsoft’s market share grew the most among top cloud players

Earlier, we discussed the increased optimism surrounding Microsoft’s (MSFT) improving position in the cloud space.

The above presentation by Synergy Research shows that the cloud space’s top four players—Amazon (AMZN), Microsoft, Google (GOOG), and Alibaba (BABA)—boosted their market shares in 4Q17. Among all players, Microsoft’s market share boost was the highest at 3%. IBM (IBM) was the only player that didn’t report a rise in its market share. It’s likely that Azure’s increased adoption and penetration is what helped Microsoft to secure the largest cloud space market share gain.

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Also, 4Q17 marked the first time that Alibaba joined the league of top five players in the cloud space. Google, Microsoft, Amazon, Apple (AAPL), and Facebook (FB) were the top five spenders and collectively accounted for 70.0% of hyperscale capex (capital expenditure) in 4Q17. John Dinsdale, chief analyst and research director at Synergy Research Group, noted, “Over the last four years we have seen many companies try and fail to compete with the leading cloud providers. The capex analysis emphasizes the biggest reason why those cloud providers are so difficult to challenge.”

Analysts’ recommendations for Microsoft stock

Of the 38 analysts tracking Microsoft stock, only one has given it a “sell” recommendation. Thirty analysts have given it “buy” recommendations, and seven have given it “hold” recommendations. The median target price set by analysts for Microsoft stock was $105.21 on April 20, 2018. Microsoft’s closing price was $95 on the same day.

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