Microsoft Plans More China Data Centers in Asia Cloud Push – Report

Microsoft (MSFT) plans to build four more data centers in China by early 2022 to add to the existing six it already operates in the country, according to a Bloomberg Read More... The post Microsoft Plans More China Data Centers in Asia Cloud Push – Report appeared first on TipRanks Financial Blog.

Microsoft Plans More China Data Centers in Asia Cloud Push – Report

Microsoft () plans to build four more data centers in China by early 2022 to add to the existing six it already operates in the country, according to a Bloomberg report citing confidential sources. The planned additional facilities are part of the company’s efforts to expand its cloud computing capacity across Asia.

The global demand for internet services increased during the COVID-19 pandemic. Microsoft seeks to take advantage of this with capacity expansion.  The company aims to double its intelligent cloud capacity in China in the coming years. 

Microsoft has a local partner that operates its data centers in China. Its existing six data centers in the country are managed by a company called 21Vianet, according to Bloomberg.

Chinese companies are increasingly migrating to the cloud after being slow to do so in past years, and Microsoft is expecting a boom in data storage and management demand. China’s cloud market is expected to reach $46 billion in 2023. Microsoft’s commercial cloud revenue for the quarter ended March 31 increased 33% to $17.7 billion. (See on TipRanks)

Tigress Financial analyst Ivan Feinseth recently reiterated a Buy rating on Microsoft stock with a price target of $303. The analyst’s price target implies 16.14% upside potential.

Feinseth believes that ongoing digital transformation will add growth to Microsoft's profit, leadership position, and revenue.

Consensus among analysts is a Strong Buy based on 26 Buys. The of $297.96 implies 14.20% upside potential to current levels.

MSFT scores a “Perfect 10” on TipRanks’ rating system, indicating that the stock has strong potential to outperform market expectations.

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The post Microsoft Plans More China Data Centers in Asia Cloud Push – Report appeared first on TipRanks Financial Blog.

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CAI International to be Acquired by Mitsubishi HC Capital; Shares Soar 45%

Transportation finance provider CAI International’s (CAI) shares jumped about 45% in Friday's pre-market trading as the company agreed to be acquired by Mitsubishi HC Capital at $56 per share and Read More... The post CAI International to be Acquired by Mitsubishi HC Capital; Shares Soar 45% appeared first on TipRanks Financial Blog.

CAI International to be Acquired by Mitsubishi HC Capital; Shares Soar 45%

Transportation finance provider CAI International’s () shares jumped about 45% in Friday's pre-market trading as the company agreed to be acquired by Mitsubishi HC Capital at $56 per share and an enterprise value of $2.9 billion. The purchase price represents a premium of 46.8% over CAI’s closing price on June 17.

Per the terms of the deal, CAI’s Series A and Series B preferred stock investors will get $25 in cash for each preferred share held, along with all accrued and unpaid dividends. The acquisition, which awaits certain approvals, is expected to close in late Q3 or early Q4 of 2021.

CAI President and CEO Timothy Page said, “Over the past year, we have delivered on the commitment we made to our shareholders to return CAI’s focus to its core container leasing business. Executing on that strategy put CAI in position to partner with MHC, a strong, quality, global financial organization.” (See CAI International stock chart on TipRanks)

Page added, “The combination of CAI and MHC will allow MHC to leverage CAI’s global marketing and operational expertise, and along with MHC’s existing container investments will provide enhanced value to MHC’s container leasing customers, suppliers, employees, and other stakeholders.”

Additionally, upon closure of the transaction, CAI shares will cease to trade on the New York Stock Exchange.

On June 9, B.Riley Financial analyst Liam Burke reiterated a Buy rating on the stock alongside a price target of $60 (57.2% upside potential).

Burke noted that on the back of a rebound in container shipping volumes, the container suppliers are in a favorable position and will continue to secure longer-term fixtures at higher rates of return.

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The post CAI International to be Acquired by Mitsubishi HC Capital; Shares Soar 45% appeared first on TipRanks Financial Blog.

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