Microsoft shares ended the day at a record high following the company’s AI announcement. At Yahoo Finance Live, we will discuss how this announcement may affect the company.
video transcript
Akiko Fujita: –Microsoft stock ended the day at a record high. So far, it’s ending the day up about 4%. And at least Sheena had a number of calls from analysts asking for her opinion on the announcement Yusuf Mehdi had made at Wedbush, specifically from Dan Ives. He is already above the $375 target price, but as a result of AI-centric pricing, the total addressable cloud AI market opportunity for Microsoft could increase cloud revenue by 20% annually by 2025. said to be sexual.
So we already have a huge boost, and adding Microsoft’s co-pilot to that, we can certainly be bullish on this as well, in terms of possibilities.
Sheena Smith: Yes, Akiko. Ives calls this a game changer for his Microsoft going forward. A lot of the excitement came from not only Dan Ives, but many analysts across the street. Shares rose more than 6% in intraday trading. Another Barclays name also claims the pricing news is a big step for Microsoft’s AI monetization. He also noted that he had the edge on expectations, a similar sentiment I heard from Jefferies’ Brent Till.
However, when it comes to similar earnings upside to Barclays, Barclays says the earnings from these tools could be substantial given their high adoption rates. So we are very excited about this right now. What AI Means for AI — Excuse me, but what that means for Microsoft in a few years will largely depend on adoption rates and the speed at which companies adopt AI. If you’re judging based on the excitement we’ve seen over the past few months, I think it’s safe to say that companies will adopt these types of products at a very fast pace.
Akiko Fujita: yes. And Microsoft already has this kind of functionality built in because of the Microsoft ecosystem and expectations, right? Built in, I don’t know if you want to call it loyalty, but the user base is already there doing. And as Yusuf Mehdi points out, given how things like ChatGPT for example are being used today, a lot of it is being used within office spaces, so it’s interesting not just from a revenue perspective. It will be a thing, Seana. I’m interested in what we can learn as a result of this, even from a use case perspective. And I’m sure you can get a lot more from Microsoft.
Sheena Smith: I’m sure it will. But yeah, but there was a big rally in the stock today. In early trading, it set new intraday highs.
