What Is MSFT Azure Worth?
Our estimate is that Microsoft Azure will generate revenue of approximately $88 billion in FY 2025. What would one pay for MSFT’s Azure business?
We included a multiple of revenue scenario analysis in the table below, yet, what will Azure’s cash flow look like going forward? My view is that all datacenter costs should be expensed, rather than capitalized.
How many years would it take for Azure to begin to generate meaningful free cash flow if MSFT 0.00%↑ has $100 billion datacenters on the horizon and those costs would need to be expensed?
