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Microsoft shares gain for a second straight session on Tuesday, $1 billion to be invested in cloud project in Poland

Microsoft Corp (MSFT) said on Tuesday that it intended to open a data center in Poland to provide cloud services to businesses and government institutions.

It plans to invest as much as $1 billion in the project.

Microsoft shares closed higher for a second consecutive trading session on NASDAQ on Tuesday. The stock went up 1.07% ($1.92) to $180.76, after touching an intraday high at $183.65, or a price level not seen since February 20th ($187.25).

Shares of Microsoft Corporation have risen 14.62% so far in 2020 compared with an 11.22% 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.

The tech giant said it had formed a partnership with Chmura Krajowa (National Cloud), a Polish cloud provider established in 2018 by PKO Bank Polski and the Polish Development Fund (PFR).

“I deeply believe that Microsoft’s investment in Poland will be important for enterprises, public institutions and the education system and will enable them to digitally transform and implement new work standards,” Poland’s Prime Minister Mateusz Morawiecki said in a statement, cited by Reuters.

The tie-up between Microsoft and Chmura Krajowa (National Cloud) is expected to last for 7 years.

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 $220.00 and a low estimate of $145.00. The median estimate represents a 10.64% upside compared to the closing price of $180.76 on May 5th.

The same media also reported that at least 28 out of 34 surveyed investment analysts had rated Microsoft Corp’s stock as “Buy”, while 4 – as “Hold”.

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