Wall Street's main indexes were on track to open higher on Friday after concerns over interest rates battered stocks in the prior session, while investors awaited data and comments from policymakers to assess the Federal Reserve's next steps.
Enthusiasm about artificial intelligence (AI) has driven substantial gains in the stock market this year, and it certainly has investors' attention. The technology is still in the early stages of its development, but Wall Street's estimates about its long-term potential are stagg
Wall Street index futures inched up on Friday after concerns over interest rates battered stocks in the prior session, while investors awaited data and comments from policymakers to assess the Federal Reserve's next steps.
Not too long ago, cryptocurrencies looked like one of the best investment opportunities, as bulls thought the digital system could eventually replace traditional payment methods. But the decentralized aspect of crypto has made it challenging to rely on its growth, with prices flu
Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Schwab Fundamental U.S. Broad Market Index ETF (FNDB) is a smart beta exchange traded fund launched on 08/13/2013.
Futures tracking Wall Street indexes inched up on Friday after concerns over interest rates battered stocks in the prior session, while investors kept a watch on data and comments from policymakers to assess the central bank's next steps.
About a year ago, the U.S. security firm Palo Alto Networks began to hear from a flurry of companies that had been hacked in ways that weren't the norm for cybercriminals.
(RTTNews) - The Competition and Markets Authority in the UK stated that the sale of Activision's cloud gaming rights to Ubisoft substantially addresses previous concerns and opens the door to the deal being cleared. The CMA has identified limited residual concerns with the new de
Fool.com contributor Parkev Tatevosian highlights one growth stock that is likely to join the coveted $1 trillion market capitalization milestone in the coming years.
Emerging Asian stock markets rose on Friday, while most currencies traded in a narrow range as investors digested the prospects of higher-for-longer U.S. interest rates.
Britain's antitrust regulator on Friday said there were grounds to clear Microsoft's $69 billion acquisition of Call of Duty owner Activision Blizzard.
Thailand's new Prime Minister Srettha Thavisin met with U.S. companies including Microsoft, Google, and Estee Lauder in his first trip abroad since coming to power last month, looking to draw investment to boost a flagging economy.
Microsoft on Thursday announced a "unified" artificial intelligence (AI) for its Windows 11 platform and four new Surface devices, upping the appeal of its products spruced with the latest technology.
Oracle ORCL recently announced that it is expanding its distributed cloud offerings to meet the diverse needs of organizations and growing demand for Oracle Cloud Infrastructure (“OCI”) services worldwide.The company introduced Or
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco NASDAQ 100 ETF (Symbol: QQQM) where we have detected an approximate $201.0 million dollar inflow -- that's a 1.4% increase week over week in
What you need to know… The S&P 500 Index ($SPX ) (SPY ) today is down -1.01%, the Dow Jones Industrials Index ($DOWI ) (DIA ) is down -0.52%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) is down -1.17%. Stocks this morning are moderately lower, with the S&P...
Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P 500 ETF, which added 10,150,000 units, or a 1.3% increase week over week. Among the largest underlying components of IVV, in
Since
Microsoft
(
MSFT)
released its fiscal fourth quarter (June quarter) results, investors have been playing the wait-and-see game regarding the cloud business’s growth trajectory. More to the point, notes Wedbush analyst Dan Ives, they would like to know “when the AI monetization opportunity will start to show up in numbers.”
Well, it won’t be long, says Ives. “We believe while management has talked about a ‘gradual ramp’ for AI monetization in FY24 we believe so far the adoption curve is happening quicker than expected based on our recent checks,” the 5-star analyst said. “Our latest Azure checks also show a clear uptick in activity sequentially (AI driven) which gives us further confidence in Microsoft exceeding its 25%-26% Azure growth guidance in FY1Q.”
As Ives has touched base with Microsoft's customers, partners, and conducted some field checks throughout the quarter, it has become evident that the potential for monetizing AI and deploying ChatGPT in the cloud represents a “transformational opportunity across the industry with Redmond in the drivers seat.”
Microsoft has already announced that Microsoft CoPilot - the AI assistant feature for Microsoft 365 applications - will be priced at $30 per month per user. This is on top of present payments for Microsoft 365 E3, E5, Business Standard, and Business Premium. It’s all a bit of a game changer, believes the analyst, expecting more than 50% of Microsoft’s installed base to use this AI functionality.
Furthermore, Ives reckons that for every $100 of cloud Azure spend made over the last few years, there is an “incremental $35-$40 of AI spend that now is on the table,”
“Our thesis remains that the cloud and underlying Office 365/Windows ecosystem is going to comprise a bigger and bigger piece of Redmond going forward and will ultimately spur growth and margins into FY24,” he summed up.
With all this to come, Ives maintained an Outperform (i.e., Buy) rating and $400 price target, suggesting shares have room for 26% growth in the months ahead. (To watch
Ives’ track record,
click here)
Of the 34 MSFT reviews submitted during the past 3 months, 30 say Buy, 3 remain on the sidelines while 1 implores to Sell, all adding up to a Strong Buy consensus rating. At $392.41, the average target implies potential upside of 24% for the year ahead.
(
See Microsoft stock forecast on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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