Microsoft (MSFT) is up more than $9 a share this morning.
While the $2.5 trillion stock now trades at $335.30, there’re more upside ahead.
In fact, according to Wedbush analyst Dan Ives, the stock could see a $3 trillion valuation in 2022. “I think they clearly can hit,” said the widely followed tech analyst on whether Microsoft will hit a $3 trillion market cap in early 2022, as noted by Yahoo Finance.
“What we are seeing in the cloud, Microsoft is leading the way. I think that is what we have seen with the stock — it’s a re-rating as investors further understand just how this growth story is playing out. Our view is that this is a $3 trillion market cap company.”
Earnings growth has been just as impressive.
In its recent quarter, the company posted adjusted EPS of $2.27, as compared to estimates for $2.07. Revenue came in at $45.32 billion, as compared to expectations for $43.97 billion.
“We delivered a strong start to the fiscal year with our Microsoft Cloud generating $20.7 billion in revenue for the quarter, up 36% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft, as quoted in a company release.
Technically, the stock is just starting to pivot higher.
After falling from about $350 to about $318, MSFT caught support and is turning higher. From a current price of $335, we’d like to see the MSFT stock challenge its prior high, with a potential push to $375 a share, near-term.