Microsoft (NASDAQ:MSFT) is a name that has resonated for so long in the technology sector that it is easy to forget how well it has performed in the back half of this decade. Its recent win for the $10-billion U.S. Department of Defense Joint Enterprise Defense Infrastructure (or JEDI) contract puts a stamp on a remarkable 2019.
Microsoft appeared to be the underdog in the fight for the JEDI contract with its rival Amazon.
Reportedly, Amazon (NASDAQ:AMZN) is already considering a challenge to the award of the contract, citing interference by U.S. President Donald Trump in the bidding process. Microsoft has also received some pushback from some of its own employees. This group, calling itself Microsoft Workers 4 Good, has expressed concern with being "complicit [in] ‘increasing the lethality’ of the U.S. Department of Defense."
This contract win has the potential to change the cloud computing landscape over the next decade. Amazon has been a clear leader in recent years, but this deal will boost Microsoft as a legitimate challenger. The win comes right after a first quarter FY2020 earnings report that saw the company’s revenue climb 14% year-over-year to $33.1 billion. Diluted earnings per share jumped 21% to $1.38. Both exceeded analyst expectations.
Microsoft stock is trading close to its 52-week high, but it is too hard to bet against the company in late 2019. It is on track to reach new heights as we look ahead to the next decade, and the stock should roll right along with it.
Tech Insider
