Normally, tech giant Microsoft (MSFT) does not show up in news about government procurement projects. At least, not much beyond Windows licenses and the like. Today proved different, though,as reports emerged about a $170 million contract with the United States Air Force. News of a nine-figure payday seldom goes amiss with investors, and this point was no different. Microsoft shares gained nearly 2% in Thursday afternoon’s trading.
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The $170.4 million that Microsoft landed was in continued support of the Air Force’s Cloud One program, which is a major part of the overall enterprise cloud strategy that the Air Force is using. It requires Microsoft to bring in and support Microsoft Azure cloud services for the Air Force, and will run through December 7, 2028.
Cloud One uses several major cloud platforms, including Oracle’s (ORCL) Oracle Cloud Infrastructure and Amazon’s (AMZN) Amazon Web Services to serve several different functions. It operates as a platform for faster software development, improved automation, modernized legacy systems, and more. It also helps improve collaboration efforts and keeps infrastructure costs down.
Xbox Players, Check for Store Credit
Meanwhile, Xbox players may want to know about some free store credit that they may have coming to them. Users will need to simply check their Microsoft Store App profiles under the “Offers and Credits” tab to see if the credit has been applied. Fair warning, though: the credit has an expiration date that needs to be considered.
Credits like these can be a valuable marketing tool for any company, and Microsoft is no exception. Offering store credit like this can push a buyer over the top in terms of making a purchase, and an extra purchase is more revenue to consider at the end of the day.
Is Microsoft a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 32 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 0.58% loss in its share price over the past year, the average MSFT price target of $628.25 per share implies 39.04% upside potential.
