3 Risks Microsoft Faces Due to Amazon's JEDI Contract Challenge
Microsoft's (NASDAQ: MSFT) cloud business is firing all cylinders. Revenue from Azure cloud grew 59% in its fiscal 2020 first quarter, which ended Sept. 30, and the company landed a multiyear $10 billion cloud contract with the Pentagon.
Investors have responded to Microsoft's cloud-based success by sending its stock 15.7% higher so far in 2020. That rise comes on the heels of an impressive 55% gain in 2019. With a market capitalization of about $1.4 trillion, Microsoft is among the most valuable public companies in the world.
But that Pentagon contract, which has been helping to drive the share price upward, is now under threat, which adds a touch of reputational, growth and stock risk into the Microsoft cloud story.
Source Fool.com
