Alphabet’s GOOGL division Google added Material 3 features to Google Docs, Sheets, Slides and Meet in a bid to provide an enhanced experience to Workspace users.
With the stock market recently down more than 20% from its 52-week high, qualifying as a bear market, smart investors know that such circumstances tend to offer many terrific investment opportunities in the form of great companies with their stocks on sale.
The metaverse is a shared virtual 3D world or worlds, which are interactive and collaborative. It encompasses a range of technologies in the field of collaborative spatial computing. The technologies include interactive 3D graphics, augmented reality (“AR”), virtual reali
Bed Bath & Beyond (NASDAQ: BBBY) shares have taken a severe beating in 2022. The home goods retailer's stock price stands 91% below the 52-week highs of March and 81% short of its year-ago reading.
Meta Platforms META recently got a warning from the European Commission for breaching the European Union's (“EU”) antitrust laws over its online classified advertising practices on the Facebook Marketplace.
Cloud computing is become the industry standard for the management and distribution of computing resources. Businesses can use the power of the cloud to more effectively run software, store data, and perform powerful analytics. Precedence Research projects the $380 billion cloud
A stock market sell-off over the last 12 months highlights the importance of investing with a long-term perspective. Doing so can help safeguard your investment from what often turn out to be temporary economic declines. Numerous stocks got dragged down over the course of the yea
Adobe’s stock (NASDAQ: ADBE) increased 2.4% in the last week, outperforming the S&P 500 (down 2.5%). Further, the same trend was observed over the last ten days (-0.9% vs -5.8%) and one month (0.04% vs -3.1%).
Investing in technology stocks will take patience and higher risk tolerance at the moment but the sector’s broader 2022 decline may present great long-term buying opportunities.
Microsoft Corp was hit on Tuesday in U.S. court with a private consumer lawsuit claiming the technology company's $69 billion bid to purchase "Call of Duty" maker Activision Blizzard Inc will unlawfully squelch competition in the video game industry.
Microsoft Corp was hit on Tuesday in U.S. court with a private consumer lawsuit claiming the technology company's $69 billion bid to purchase "Call of Duty" maker Activision Blizzard Inc will unlawfully squelch competition in the video game industry.
In a
prior piece, I highlighted a few AI-leveraging tech stocks (spoiler alert: they're two well-known FAANG names) that investors may have wanted to consider amid the recent surge in interest surrounding OpenAI's recent software. OpenAI's OpenGPT Chat and Dall-E are just two intriguing projects that have gone viral of late. One of the tech titans I didn't mention in my prior piece is Microsoft (
NASDAQ:MSFT
), which is now involved in OpenAI.
It's mind-blowing to have a work of art or sophisticated response with just a few words of text. Indeed, AI technology has advanced by leaps and bounds. The popularity of OpenAI's projects may be an early sign of what to expect in the latter part of the decade.
As impressive as OpenAI's projects are in their current state, it's clear they're not yet refined enough to put search engines out of business. In a couple of years, though, anything is possible.
It's tough to ignore the splash that such OpenAI software has made in recent months, even as this market continues to shun tech stocks. That's the disruptive power of AI. It doesn't care what direction interest rates are headed. As it's unleashed on the world, the disruptive capabilities could have the potential to be unfathomable.
Microsoft: The Tech Behemoth Standing Behind OpenAI
The enterprise (and video-gaming) software giant we all know and love has a $1 billion stake in OpenAI alongside a multi-year partnership that could be renewed down the road.
As OpenAI's projects become more sophisticated, Microsoft may be in a great spot to increase its stake. Integrating OpenAI's next-generation AI alongside Bing (Microsoft's search engine), Azure, and even Xbox Gaming could help propel Microsoft to the forefront of innovative tech once again.
Indeed, the aging tech company just keeps finding ways to reinvent itself.
Even if OpenAI hits a few regulatory hurdles or roadblocks along the way, there's not much for Microsoft to lose. Its investment is a mere drop in the bucket compared to its other businesses. Still, such a small moonshot-like investment could have sizeable returns.
In a way, I believe that Microsoft's budding relationship with OpenAI could transform the company over the next decade and beyond.
You don't need a market analysis to see the potential behind OpenAI's latest projects. OpenGPT and Dall-E have taken the world by storm, and these projects are likely still in their infancy. Though the potential behind the two AI-powered viral hits is difficult to fathom, OpenAI sees its OpenGPT project hitting the $1 billion revenue milestone by 2024. Undoubtedly, 2023 could be a big year for the AI chat program.
If OpenAI hits (or exceeds) such a target, Microsoft will have a front-row seat to the next big thing. The implications on MSFT stock could have the potential to be sizeable, as OpenAI looks to help Microsoft's divisions outpace that of the competition.
Looking to the public cloud, the tech titans are flexing their muscles. Microsoft's Azure is trailing Amazon (
NASDAQ:AMZN
) Web Services (AWS) in the race for cloud supremacy. With AI thrown into the mix, Azure could easily leapfrog AWS, and we'll go from the cloud wars to the AI wars. Expect big tech (think
MATANA or FAANG stocks) to be significant players in the rise of AI.
Is Microsoft Stock a Buy, According to Analysts?
Turning to Wall Street, MSFT stock comes in as a Strong Buy. Out of 28 analyst ratings, there are 25 Buys and three Hold recommendations.
The average Microsoft price target is $291.10, implying an upside of 20%. Analyst price targets range from a low of $234.00 per share to a high of $371.00 per share.
Takeaway: Microsoft's OpenAI Involvement May Just be the Start
Microsoft may be a $1.8 trillion behemoth, but it's not about to slow down with its growth rate. Further, it seems to be out-innovating small-tech unicorns and many of its big-tech peers.
At
25.9 times trailing earnings, Microsoft stock is moving into 2023 with a lot of pressure on its back. Though there isn't as much visibility as to what Microsoft's OpenAI investment will translate to in the distant future, I think the current multiple attached to shares is too low.
If anything, the multiple heavily discounts the company's innovative capabilities. While Microsoft's peers may have similar AI projects, one can't help but notice Microsoft's ability to take risks on potentially disruptive technologies.
Disclosure
European antitrust regulators have opened an in-depth investigation into U.S. chipmaker Broadcom's proposed $61 billion bid for cloud computing company VMware, the European Commission said on Tuesday.
NEW YORK (Reuters Breakingviews) - Satya Nadella keeps thinking bigger. Microsoft’s chief executive has been buying new businesses at an impressive clip. Look for him to add Netflix to the list in 2023.
Oracle ORCL recently announced that India-based Tata Motors is implementing Oracle Cloud Infrastructure (OCI) services to boost its operational efficiencies with deeper business insights, greater security, increased flexibility and cost optimization.Oracle’s Cloud Infrast
EU antitrust regulators have asked game developers and distributors if they think Microsoft will block their access to Activision Blizzard's games once it has bought the company, an EU document seen by Reuters shows.
EU antitrust regulators have asked game developers and distributors if they think Microsoft will block their access to Activision Blizzard's games once it has bought the company, an EU document seen by Reuters shows.
Technology stocks were slipping pre-bell Tuesday. The Technology Select Sector SPDR Fund (XLK) was down 0.25% and the iShares Semiconductor ETF (SOXX) was 0.44% lower recently.