3 Top Tech Stocks Stand Out at Gigantic Amazon Web Services Conference
Amazon is known for almost totally dominating product sales on the Internet, but another area the mega-cap tech giant is starting to dominate is cloud computing services with the company’s wildly successful Amazon Web Services (AWS). Deutsche Bank attended the huge AWS conference in Las Vegas, along with 19,000 others, and came away very positive on three top technology companies.
In a new research report, Deutsche Bank was very impressed with the AWS innovation and the incredible enterprise adoption. The report pointed out that General Electric has said it is moving 60% of the company’s information technology workloads to AWS. The firm also came away impressed with three top software stocks, all of which are rated Buy at Deutsche Bank.
This top technology stock should not only do fine in the coming rising rate environment, but give investors some degree of mega-cap tech safety. Microsoft Corp. (NASDAQ: MSFT) stock has gapped up and down this year on earnings, and while the release of the new Windows 10 has put some focus back on the software giant, some bugs in the software have cause update issues, and those are reportedly being dealt with.
The Deutsche Bank team points to the fact that among the large-cap IT players, the feedback on Microsoft at the conference was very positive, and they were surprised at how frequently Azure, which is the company’s cloud computing platform offering, was flagged as a rival to Amazons AWS service. They also noted that Microsoft is discounting Azure for large enterprises, so it may end being cheaper than AWS for larger users.
Microsoft investors are paid a very solid 3.1% dividend. The Deutsche Bank price objective is $55, and the consensus price target is $50.17. The stock closed Thursday at $47.45.