Technology major Microsoft Corporation (MSFT) and Kyndryl, the world’s largest IT infrastructure services provider, recently announced a global strategic partnership that will combine their expertise to serve enterprise customers worldwide.
Following the news, shares of the company rose 1.3% to close at $337.15 on Friday.
Implications of the Partnership
The collaboration intends to enhance hybrid cloud adoption with the help of Microsoft Cloud and enable modern applications and processes to ensure a hassle-free work experience for customers. Moreover, the partnership aims to focus on data modernization and governance, AI-driven innovations for industries, cyber security and resiliency, and transformation of mission-critical workloads to the cloud.
Further, with complementary capabilities, both the companies can benefit from the partnership. While Kyndryl will have access to additional markets and customers, Microsoft will gain a strong foothold in the $500 billion managed services market where Kyndry is a leading player.
The CEO of Microsoft, Satya Nadella, said, “As Kyndryl’s only premiere global alliance partner, with the power of the Microsoft Cloud we will help customers across every industry manage and modernize their business for the era ahead. We are looking forward to partnering with Kyndryl to serve our shared customers, building on its expertise and understanding of mission-critical IT systems, as well as the company’s deep relationships with enterprises around the world.”
See Analysts’ Top Stocks on TipRanks >>
Recently, Mizuho Securities analyst Gregg Moskowitz reiterated a Buy rating on the stock with a price target of $360, which implies upside potential of 6.9% from current levels.
Consensus among analysts is a Strong Buy based on 22 Buys and 1 Hold. The average Microsoft price target of $364.36 implies upside potential of 8.2% from current levels. Shares have gained 55% over the past year.
TipRanks Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Microsoft’s performance this quarter.
According to the tool, the Microsoft website recorded a 2.49% monthly fall in global visits in October. Meanwhile, the website traffic has grown 17.52% year-to-date.
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