Microsoft shares close lower on Thursday, tech giant interested in investing in Indonesia data centers, President says

Microsoft Corp (MSFT) is interested in investing in data centers in Indonesia, the country’s President said following a meeting with Microsoft’s Chief Executive Satya Nadella on Thursday.

Indonesia is also expected to soon introduce key changes to regulatory framework in support of the move.

Microsoft shares closed lower for the sixth time in the past ten trading sessions on NASDAQ on Thursday. It has also been the steepest single-session loss in more than a year. The stock went down 7.05% ($11.99) to $158.18, after touching an intraday low at $158.16, or a price level not seen since January 8th ($157.95).

Shares of Microsoft Corporation have risen 0.30% so far in 2020 compared with a 7.80% loss for the benchmark index, S&P 500 (SPX).

In 2019, Microsoft’s stock went up 55.26%, thus, it again outperformed the S&P 500, which registered a 28.88% gain.

“Microsoft wants to invest immediately in Indonesia,” President Joko Widodo said during an event celebrating 25 years of Microsoft Corp’s presence in Indonesia.

“So within a week we will decide a new, simple regulation to support the investment,” Widodo added, without providing further details.

According to a report by Google, Singapore state investor Temasek Holdings and Bain & Company, Indonesia’s digital economy, the largest in Southeast Asia, could expand to $130 billion by the year 2025. In comparison, it was estimated at about $40 billion in 2019.

Analyst stock price forecast and recommendation

According to CNN Money, the 30 analysts, offering 12-month forecasts regarding Microsoft Corp’s stock price, have a median target of $200.00, with a high estimate of $212.00 and a low estimate of $165.00. The median estimate represents a 26.44% upside compared to the closing price of $158.18 on February 27th.

The same media also reported that at least 28 out of 34 surveyed investment analysts had rated Microsoft Corp’s stock as “Buy”, while 3 – as “Hold”.

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