Here's Why Micro Focus Stock Jumped Today
What happened
Shares of Micro Focus International (NYSE: MFGP), an infrastructure software company, jumped on Wednesday. The tech stock rose as much as 14.9% and finished the trading day up 14.2%.
The 's gain comes after an announcement that Micro Focus will collaborate with Amazon's (NASDAQ: AMZN) cloud computing division, Amazon Web Services (AWS).
Image source: Getty Images.
So what
In a blog post today, Micro Focus said this agreement "formalizes a strategic collaboration to accelerate the modernization of mainframe applications and workloads of large public and private enterprises to the AWS Cloud." The two companies will deploy Micro Focus technology so that customers can modernize mainframe applications and workloads on an "agile, cloud-based production environment."
Now what
This agreement presents a significant opportunity for Micro Focus. AWS is the top cloud-computing player in the world and added $45 billion to the e-commerce giant's revenue in 2020, up from $35 billion in the prior year. A strategic partnership with this fast-growing behemoth is undoubtedly good news for Micro Focus investors.
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