Juniper Networks also provides switching products, including EX series Ethernet switches to address the access, aggregation and core layer switching requirements of micro branch, branch office, and campus environments; QFX series of core, spine and top-of-rack data center switches; and Juniper access points, which provide wireless access and performance.
In addition, the company offers security products including SRX series services gateways for the data center; Branch SRX family provides an integrated firewall and next-generation firewall; virtual firewall that delivers various features of physical firewalls; and advanced malware protection, a cloud-based service and Juniper ATP.
The most recent earnings missed Wall Street estimates but revenue was up by double-digits year over year on solid cloud and enterprise business growth, which is expected to be sustained as supply chain issues continue to improve.
Juniper Networks stock comes with a 2.84% dividend. Needham’s $39 price target compares with a $35.85 consensus target and the most recent close at $31.45.
Microsoft
This is a more conservative way for investors to participate in the massive cloud growth, and the company posted stellar second-quarter results. Microsoft Inc. (NASDAQ: MSFT) manufactures, licenses and supports a wide range of software products. The company has transformed its business model from a component-driven model (PC, server) to one driven by the need for cloud capacity.
Many Wall Street analysts agree that Microsoft has become a clear number two in the public or hyper-scale cloud infrastructure market with Azure, which is the company’s cloud computing platform offering which continues growing at massive levels. Many have flagged Azure as the biggest rival to Amazon’s AWS service.
Some analysts maintain that Microsoft is discounting Azure for large enterprises, such that Azure may be cheaper than AWS for larger users. The cloud was big in recent earnings reports and will remain a growing part of the software giant’s earnings profile.
The big news for the company has been the investment and the expected deployment of ChatGPT, in which Microsoft is making a substantial investment. ChatGPT is the very popular chatbot from OpenAI that is estimated to have reached 100 million monthly active users in January, just two short months after launch. It is the fastest-growing consumer application in history, according to a UBS study.
Shareholders receive a 1.08% dividend. Microsoft stock has a $315 target price at Goldman Sachs. The consensus target is $283.73. The shares closed almost 5% higher to $264.60 on Thursday.
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