Before we unveil the topic (as you haven’t seen the title, obviously), would you mind closing your eyes and recalling certain sounds, like operating system startup and shutdown, as well as error notifications? We'll bet anything you heard the sounds from Windows operating systems. If not, it might suggest that Microsoft is losing the competition to Apple's MacOS. Besides a line of operating systems, Microsoft also owns a suite of productivity applications. Now, envision a scenario where AI is introduced to replace manual typing and take notes if you are ok with paying an extra $30. This price announcement has recently boosted Microsoft stock to an all-time high.
Earlier this week, Microsoft shares closed at a record following the company's pricing announcement for the new Microsoft 365 artificial intelligence subscription service. The stock jumped 4%, closing at $359.49.
It’s now up about 50% for the year and pushing the company’s market cap to $2.67 trillion.
The Microsoft 365 Copilot, first announced in March, will incorporate AI assistance for popular Office products such as Word, PowerPoint, Excel, Outlook, and Teams. This AI tool can design presentations, provide writing prompts, summarize meetings, and prioritize incoming emails. It has already undergone testing with 600 customers. However, Microsoft has yet to announce its wider public availability.
With a price tag of $30 per month, enterprise customers might see their monthly costs increase significantly, potentially by up to 83%.
Microsoft CEO, Satya Nadella, stated that this AI addition would "fundamentally change the way we work and unlock a new wave of productivity growth." Microsoft's AI ambitions were boosted earlier this year when the company acquired a 49% stake in OpenAI. Since then, AI capabilities have been integrated into Bing Search, and the recent launch of Copilot seems to continue the AI trend.
Investors responded positively to this move and the apparent pricing power of the company. However, it is crucial to remember that conducting one's own analysis is essential for achieving success. Utilizing various trading tools like the economic calendar or stock screener and considering the opinions of analysts can aid in market research, which is half the work, while the rest depends on your own personal knowledge.
