Azure Fires on All Cylinders as Microsoft Stock Hits New Heights

Microsoft's (NASDAQ:MSFT) stock has several growth drivers that are contributing to its upward momentum. The company's Azure business is growing at a rate above 40%, and it recently passed $100 billion in annual revenue. Microsoft's management also provided fiscal Q1 guidance, which calls for about 45% growth in constant currency.

The strong performance of Azure and the company's commercial backlog are key factors supporting a price target of $629 with 22% upside. This is based on the stock trading at around 6% below its 52-week high of $549.20.

The company also has a significant commercial backlog, with about $678 billion in contracts yet to be fulfilled. This backlog is critical, as it represents about 30% of revenue that converts within 12 months.