Oracle lost its court challenge on Friday, July 12, 2019 which means the Department of Defense will choose between Amazon and Microsoft for the $10 billion contract called JEDI (joint enterprise defense infrastructure).
The JEDI contract is meant to bring the military into the modern era of cloud computing. The Pentagon plans to award the project to only one cloud vendor because of security, reliability, and interoperability concerns.
This is going to be the mother load of all Federal awarded contracts.
The Pentagon was set to give the contract to Amazon or Microsoft before Oracle challenged the “only one cloud vendor” requirement in court and the criteria used for bidding. The Pentagon won the court challenge on Friday when Judge Eric Bruggink of the U.S. Court of Federal Claims found that Oracle’s challenge was without merit.
Both Microsoft and Amazon talked smack on President Trump but I think Amazon is the more despised company after its founder Jeff Bezos bought the failed Washington Post and used it to espouse his own Democrat globalist agenda and to attack President Trump with a constant stream of fake news. We will see if Jeff Bezos’ indiscretion cost him a $10 billion contract.
Microsoft scores high on analysts that give the stock a buy recommendation, and has a much better profitability, health, and dividend than Amazon. However, the valuation of Microsoft is fairly poor.
Microsoft stock looks like a slightly better entry than Amazon stock at the moment; however, both Amazon and Microsoft do not meet the stringent requirements for inclusion in the GST Portfolio at this time.
Disclosure: I do not hold any position in any stock mentioned in this article.