The Force is with Microsoft: Shares up on winning JEDI contract
Reuters
Published Oct 28, 2019 07:46AM ET
Microsoft (O:MSFT) shares rise 3.4% to $145.50 premarket, after company wins the Pentagon's $10 billion cloud computing contract.
- The Joint Enterprise Defense Infrastructure Cloud (JEDI) contract is part of a broader digital modernization of the Pentagon meant to make it technologically more agile.
- MSFT was chosen for the contract over U.S. Defense department (DoD) favorite Amazon.com Inc (O:AMZN)
- Brokerage Wedbush expects Amazon and others to challenge this decision in the courts, but ultimately this is a paradigm changer for Microsoft
- This deal adds at least $10/share to MSFT's stock and could have significant positive financial implications for the company over the coming years - Wedbush
- Shares of Amazon fall -1.1% to $1,742.50 premarket
- As of Friday's close, MSFT shares had gained 38.6% this year and were the second best performer on the blue-chip Dow Jones index (DJI)
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Written By: Reuters
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