Fresh off of an earnings beat that sent the stock higher last week, Microsoft (MSFT) - Get Report opened Monday's trading at a record after winning a major government contract.
Microsoft will be responsible for moving all the military's computer systems to a single cloud system under a 10-year $10 billion contract for JEDI (Joint Enterprise Defense Infrastructure) from the Department of Defense.
The JEDI contract is a big win for Microsoft as the company beat out rival Amazon (AMZN) - Get Report and its market leading Amazon Web Services cloud platform. Amazon's cloud market share was about 33% as of the end of the second quarter, while Microsoft's Azure held 16%.
Amazon is reportedly considering a challenge to the contract award due to potential interference from President Donald Trump, according to Bloomberg. The president has been a frequent critic of the Seattle company and its CEO, Jeff Bezos.
Trump delayed awarding the contract in 2018 after receiving complaints about favoritism towards Amazon. Oracle CEO Safra Catz reportedly complained to Trump about the issue at a private dinner in April 2018, according to a Bloomberg report at the time.
Microsoft was trading up 3% near $145 a share.
Microsoft is a key holding in Jim Cramer's Action Alerts PLUS charitable trust.