The Actual Recommended
Trade for Microsoft.....
Last Friday Microsoft Corporation (NASDAQ:MSFT) claimed that the newest model of
ChatGPT, an AI algorithm backed by the PC pioneer, was showing “sparks” of
intelligence that were “strikingly close to human-level performance”.
general intelligence, as it is known, has been the holy grail of researchers
for decades. The prospect that Microsoft may have gotten there first is yet
another body blow for Google.
as good as how you use it,” says Sachin Dev Duggal, founder of UK start-up
Builder.AI. “Most people just type in a bunch of words."
“With a language
model [the technology underpinning ChatGPT], you can get a more refined search
result. It can infer what those words mean in a wider context.”
has already integrated ChatGPT into its search engine, Bing, sparking fears
that the new AI-powered search tool could upend the traditional power balance
that has seen Google dominate for decades.
chief executive Satya] Nadella and OpenAI [ChatGPT’s developer] are right now
miles ahead of Google and its Bard endeavour for AI,” says Dan Ives, an analyst
at Wedbush Securities.
ChatGPT’s viral success, Microsoft invested billions in OpenAI. Companies
including Stripe, Morgan Stanley and Klarna have all announced deals with the
Corporation was founded in 1975 in Albuquerque, New Mexico by Bill Gates and
Paul Allen. The two quit their respective Harvard schooling and programming
jobs to start a software company focused on the then-popular Altair 8800.
Originally named Micro-Soft, Microsoft is a portmanteau of the words
microprocessor and software. The company quickly took off and was relocated to
Washington State where it is headquartered today.
launched a game called Flight Simulator in 1982 that has since become the
longest-running video game franchise. The company’s first major breakthrough
came in the early 80s when it licensed MS-DOS to IBM for their personal
computer and then another came in 1985 the company altered the way computers
were used when it launched Windows. Windows used a graphical interface to
display information that included drop-down menus, scroll bars, and other
features commonly found in operating systems today.
went public in 1986 making founder Bill Gates the world’s youngest billionaire.
Other innovations that helped make the company’s name include Windows 95 which
included many upgrades to the original and, when the Internet took off,
Internet Explorer. Bill Gates gave up his role as CEO in 2000 and the company
is now run by Satya Nadella. Mr. Nadella took over the role of CEO in 2014 and
then the role of chairman in 2021.
company develops, licenses, and supports software, services, devices, and
solutions worldwide. The company operates in three segments that include
Productivity and Business Processes, Intelligent Cloud, and More Personal
Computing. As of 2022, Microsoft’s Azure powered more than 20% of the Cloud
putting it in second place globally.
Productivity and Business Processes segment offers several software solutions
including Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security
and Compliance, Microsoft Viva, and Skype for Business. Microsoft also operates
Skype, Outlook.com, OneDrive, and LinkedIn for business professionals as well
as Dynamics 365. Dynamics 365 is a set of cloud-based and on-premises business
solutions for organizations and enterprises of all sizes.
Further Catalysts for
the MSFT Weekly
In 2022, the
Nasdaq Composite plunged 33%, bringing down the stocks of some of the
world's most valuable companies. For instance, despite having the
second-largest market cap in the world at $2 trillion, Microsoft fell
29% throughout last year. Like many in the tech world, the company was hit by
steep declines in the PC market brought on by reduced consumer spending.
Microsoft's history of stellar growth suggests recent headwinds were only
temporary, and its developing venture in artificial intelligence (AI) is a
strong argument for long-term success. The stock has begun trending up since
the start of 2023 but remains down 10% year over year.
The launch of OpenAI's ChatGPT in November 2022 kicked off an AI race
that has seen many companies venture into the burgeoning market. So far,
Microsoft has had the advantage in the race, investing $1 billion in OpenAI in
2019. ChatGPT's success prompted the company to invest another $10 billion in
OpenAI in January.
According to Grand View Research, the AI market was valued at $137
billion in 2022 and is projected to expand at a compound annual rate of 37.3%
through 2030. And Microsoft's investment in OpenAI has allowed it to use its
technologies in several programs. For example, ChatGPT has been integrated into
Microsoft's search engine Bing and is available on its cloud platform Azure.
these products would benefit by incorporating ChatGPT into its customer
interface -- as it's clear the chatbot is already a smash hit with the public.
Bing search tool might be the product with the most to gain. Suppose the
company can capitalize on ChatGPT's integration with Bing. In that case,
Microsoft may finally threaten Alphabet's stranglehold on the online
The stock surged 5% from March 15 to 17 after an announcement that the
company would enhance its Office productivity software (like Word and Excel)
with OpenAI technology. Microsoft says the AI features, dubbed Copilot, will
provide a "first draft to edit and iterate on -- saving hours in writing,
sourcing, and editing time."
experienced strong market-share gains in the worldwide cloud infrastructure
market in 2022, reaching 23%, up from 21% in the preceding four quarters,
according to data compiled by Synergy Research Group. In fact, over the past
five years, Microsoft has notched the largest share gains in the industry,
growing by nearly 11 percentage points since 2017. Given the consistency of the
company's market-share increases in recent years, there's every reason to
believe that trend will continue.
According to the issued ratings of 32
analysts in the last year, the consensus rating for Microsoft stock is Moderate
Buy based on the current 1 sell rating, 4 hold ratings and 27 buy ratings for
MSFT. The average twelve-month price prediction for Microsoft is $287.92 with a
high price target of $370.00 and a low price target of $212.00.
Microsoft is one of the leading cloud computing companies in the world and the
second-largest U.S. company overall.
Microsoft has had a terrific year so far in
2023, riding the tailwinds of a broader rally in technology stocks. Shares of
the tech titan are up 15% so far this year, more than triple the gains of the S&P
500. This is in stark contrast to its performance in 2022
has a debt-to-equity ratio of 0.24, a quick ratio of 1.89 and a current ratio of
1.93. Microsoft Co. has a one year low of $213.43 and a one year high of
$315.95. The company’s fifty day simple moving average is $254.84 and its 200
day simple moving average is $245.71. The stock has a market capitalization of
$2.08 trillion, a price-to-earnings ratio of 30.25, and a P/E/G ratio of 2.50
and a beta of 0.92.
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