Salesforce.com (CRM) and Microsoft (MSFT) will leverage cloud-computing prowess to drive growth, says one analyst who called them “top picks” while initiating software sector coverage. Salesforce stock and Microsoft both edged up on Thursday.




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Mizuho Securities analyst Gregg Moskowitz also started coverage on Atlassian, ServiceNow and Splunk with buy ratings. He rated LogMeIn (LOGM) and VMware (VMW) as neutral.

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Meanwhile, Salesforce stock has been ranked as an IBD Sector Leader.

In a report, Moskowitz called Salesforce “perfectly situated to help its vast customer base manage revenue and process optimization via digital transformation, with its best-in-class cloud platform.”

Microsoft Azure Cloud ‘More Powerful’

Salesforce stock rose 0.5% to close at 160.67 on the stock market today. Microsoft stock ticked up a fraction to 114.59 on Thursday.

Furthermore, Moskowitz is upbeat on Microsoft’s Azure cloud-computing business. “We believe investor concerns about Azure deceleration are overblown and that Azure is becoming more powerful,” he said.

ServiceNow stock advanced 0.5% to 241.59. He called ServiceNow (NOW) “very well-positioned to partner with large enterprises in their digital transformations.”

Atlassian stock climbed 1.8% to 110.48. Atlassian (TEAM) is listed on the IBD 50 roster of fast-growing companies.

Splunk stock gained 1.8% to 126.42. Splunk (SPLK) could be facing competition from Alphabet’s cybersecurity startup.

Follow Reinhardt Krause on Twitter @reinhardtk_tech

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