Microsoft shares hit another record as Cowen analysts predict more market share gains in cloud

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In their note to clients, Cowens Nick Yako and Carson Sippel said that Microsoft has growth opportunities ahead from its Azure public cloud and Office 365 productivity suite. In the past several months Microsoft reclaimed the title of worlds most valuable public company, with a market capitalization above $1 trillion, following its transition to a more subscription-oriented business model. The analysts see cloud products becoming a larger part of Microsofts revenue mix in the years ahead, particularly as it takes market share in infrastructure, which entails raw computing and storage resources for storing data and hosting applications, as well as by providing more services for application deployment. "We believe MSFTs hybrid approach will continue to resonate with customers who want to migrate at their own pace," Yako and Sippel wrote. The analysts see Commercial Cloud as the major contributor of growth and expect it to provide almost 60% of Microsofts total revenue in the 2025 fiscal year, up from about 30% currently.

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