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.
So sorry to hear the news about Jeff Bozo being taken down by a competitor whose reporting, I understand, is far more accurate than the reporting in his lobbyist newspaper, the Amazon Washington Post. Hopefully the paper will soon be placed in better & more responsible hands!— Donald J. Trump (@realDonaldTrump) January 14, 2019
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.