Fresh from announcing its Windows 11 operating system, Microsoft (MSFT) has another major product up its sleeve. The software giant soon will roll out its Windows Cloud PC desktop-as-a-service, a Wall Street analyst says. Microsoft stock hit a record high on Tuesday.
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Windows Cloud PC could be Microsoft’s “next killer platform,” Jefferies analyst Brent Thill said in a note to clients Sunday. The desktop-as-a-service offering could be announced at a Microsoft partner conference in July, he said.
Microsoft first disclosed its Cloud PC project in July 2020. The product is built on top of Windows Virtual Desktop. Cloud PC would offer both operating system and productivity applications on a subscription basis, according to media reports.
Windows Cloud PC should resonate initially with small and midsize businesses, Thill said.
Microsoft Stock Hits All-Time High
Thill reiterated his buy rating on Microsoft stock and raised his price target to 310 from 290.
On the stock market today, Microsoft stock rose 1% to 271.40. Earlier in the session, Microsoft stock notched an all-time high of 271.65.
“Microsoft is moving into fiscal 2022 looking for the next leg of growth from new product initiatives including a more integrated Teams and Windows 11, which brings a more modern user interface, enhanced security and new Windows Store policies to incentivize developers,” Thill said.
Microsoft unveiled its Windows 11 personal computer operating system on June 24. It will be available this holiday season as an upgrade for eligible Windows 10 PCs and on new PCs.
On June 21, Microsoft stock hit a buy point of 263.29 out of a cup base, according to IBD MarketSmith charts. The 5% buy zone extends to 276.45, based on IBD trading guidelines.
Microsoft stock is on the IBD Leaderboard and Long-Term Leaders stock lists.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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