Veteran Microsoft analyst Rick Sherlund, of investment bank Nomura, offered his thoughts in a note this morning on Microsoft’s reported restructuring, its big cloud push and its stock price.
Also this week, it was reported that CEO Steve Ballmer is apparently reorganizing the company to better align with his vision it becoming a services-and-devices company.
“We estimate the cloud is currently under 3% of Microsoft’s business, but Mr. Ballmer is expected to announce organization changes to better align the company’s development and marketing around putting the ‘cloud first’ in key parts of the business to push the company more aggressively in this direction,” Sherlund wrote in his note today.
Microsoft stock, which has been climbing and is currently trading at $35.58, is “doing well, which ironically might work against ValueAct in an effort to gain majority support from shareholders in a potential bid for Board representation,” Sherlund wrote, referring to the activist investor that earlier this year revealed it had a $2 billion stake in Microsoft. “We look for an interesting summer with some potential drama spilling into the public eye over shareholder activism to effect change and increase shareholder value. We think this is all positive for sentiment in the stock.”