Do not Count Microsoft in the Run for $ 1
Apple ( the most valuable company in America, is already estimated at about 850 billion dollars. ) Amazon ( and Google's parent company each have over $ 700 billion. )
Such is Microsoft (. And Morgan Stanley analysts say the company could reach $ 1 trillion in market value within a year. )
Morgan Stanley's new price target for Microsoft is $ 130 per share. That would be 45% higher than on Friday when the stock closed and enough to erase the trillion mark.
Microsoft stock rose nearly 7% on the Morgan Stanley report. This has led the Dow to more than 400 points.
Morgan Stanley's analysts are incredibly optimistic about Microsoft's cloud computing units, such as the Office 365 software and the Azure hosting business.
Related: Amazon occupies Google as the second most valuable company
Amazon and Google are also big players in the cloud market. IBM [) Salesforce () Cisco ( and )  Oracle ( made great bets on it too. )
However, Microsoft has been one of the biggest beneficiaries of the cloud revolution since replacing former CEO Steve Ballmer with the company's cloud guru, Satya Nadella.
Morgan Stanley analysts, citing a recent survey of Chief Information Officers, said that large companies are likely to shift more of their tech budgets to cloud services from Microsoft, Amazon, and Cisco over the next few years.
Of course, Microsoft has many other businesses. It owns the Xbox gaming hardware and software. And it has recently made a big effort in social networks through the purchase of LinkedIn.
But Wall Street believes that Nadella's big push into the cloud will boost Microsoft sales and profits in the coming years by nearly 10%.
And Morgan Stanley is not the only investment bank that predicts that Microsoft is on the verge of a $ 1 trillion market valuation. An analyst from Evercore ISI made this call last December, also leading the company's cloud strength.
CNNMoney (New York) First published on March 26, 2018: 3:12 pm ET