Finance jugglers predicted, Apple is going to be the first trillion dollar company on earth. Now, Wall Street is trying to estimate and guess if Microsoft can be a trillion dollar tech behemoth. So, can Microsoft become a trillion dollar company? Experts guess it might become a trillion dollar corporation.
Microsoft’s promising gaming business
Microsoft’s promising gaming business can help the company to achieve the milestone. A Morgan Stanley analyst, Keith Weiss, said, ‘we see Microsoft building out the ‘Netflix of Gaming’. We think that gaming has historically been largely ignored, misunderstood, and undervalued by analysts and investors.”
He further said, ‘with the gaming ecosystem expanding from the console to the PC and Mobile device, a shift from hardware and one-time video game sales to subscription services, and a future which includes streaming, broadcasting, and mixed-reality, we see Microsoft well positioned for the future of Gaming”.
$1 trillion as a market cap by 2021
Weiss also predicted Microsoft might reach $1 trillion as a market cap by 2021. He referred to a mixture of recurring revenue thanks to software and services could “support a path to $50 billion in earnings-before-interest-and-tax and a $1 trillion market cap for Microsoft”.
“Strong positioning for ramping public cloud adoption, large distribution channels and installed customer base, and improving margins support a path to $50 billion in earnings before interest and tax and a $1 trillion market cap for MSFT,” wrote Morgan Stanley’s Keith Weiss.