Microsoft Hits High Stock Value with New AI Subscription Pricing

Published by MEXEM Technical Analysis

July 25, 2024 2:51 PM

(GMT+2)

Published - July 19th, 2023 @ 10:00 AM (GMT+2)

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Record High for Microsoft on AI Subscription News

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Microsoft Corp (NASDAQ:MSFT) stock soared to a record high Tuesday, following the unveiling of the Microsoft 365 Copilot's pricing structure. This AI productivity software, priced at $30 per user per month, is expected to boost Microsoft's recurring subscription revenue significantly.

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Capitalizing on AI Demand: Microsoft's Strategy

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The unveiling of Microsoft's AI-enhanced tools including Word, Excel, and Teams, aligns with the surging demand for AI in corporate operations. These AI functionalities cover a wide range of tasks, from managing emails and meetings to analyzing spreadsheet data and crafting presentations.

Microsoft's Copilot service, integrated with enhanced security controls, is expected to ramp up enterprise customers' monthly prices by up to 83%, adding to Microsoft's earnings. The company also debuted Bing Chat Enterprise, providing businesses a safer way to use generative AI.

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Microsoft Leads in Generative AI

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Microsoft’s multibillion-dollar investment in OpenAI, the creator of ChatGPT, illustrates their commitment to AI. In addition, a major update to Bing Chat - visual search - allows users to gain information by uploading an image.

With AI subscription service, Microsoft seeks to capture a larger share of the burgeoning consumer-driven generative AI tools market, currently dominated by giants like Google and IBM.
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Microsoft's stock closed at a record $359.49, a 4% rise. Furthermore, the company's shares have skyrocketed about 50% this year. The last record was set on June 15, when the stock closed at $348.10.
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Conclusion

Microsoft's stock reaches a record high with the announcement of its AI subscriptions pricing. Leveraging the high demand for AI, the company's strategic move could lead to increased revenues and a stronger market position.

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