Metaverse is the Next Cloud-Like Opportunity for Microsoft (MSFT), Could Amount to $40B in 2023 - Piper Sandler

Piper Sandler analyst Brent Bracelin reiterated an Overweight rating and $352.00 price target on Microsoft (NASDAQ: MSFT) after the company announced the $68.7B ATVI acquisition, the largest in Microsoft history. This buy, thrusts MSFT into the metaverse arms race and has the potential to elevate its footprint in gaming and advertising to a $40B+ combined segment by CY23.

The analyst stated "We estimate the ATVI acquisition combined with Microsoft gaming and search advertising segments could exceed $40B+ in CY23 with a 68% and 32% mix split across gaming and advertising, respectively. Broader consumer reach gives Microsoft growth optionality across a variety of monetization channels via subscription, in-app purchasing, advertising, and content purchasing. Considering the advertising industry is 3-4x larger than the gaming industry, we are equally bullish on the long-term opportunity for share gain potential in advertising and gaming as the Activision Blizzard-King content is repurposed across cloud, mobile, AR/VR, and the metaverse."

For an analyst ratings summary and ratings history on Microsoft click here. For more ratings news on Microsoft click here.

Shares of Microsoft closed at $302.65 yesterday.

You May Also Be Interested In

• Keefe, Bruyette & Woods Downgrades Bain Capital Specialty Finance (BCSF) to Market Perform
• JPMorgan Downgrades JD Logistics Inc (2618:HK) (JDLGF) to Neutral
• RBC Capital Upgrades CAE Inc. (CAE:CN) (CAE) to Outperform