Microsoft Corporation Stock Intrinsic Value – Microsoft’s AI Bet Proves Game-Changing: Wedbush
December 30, 2023
🌥️Trending News
Microsoft Corporation ($NASDAQ:MSFT) is a multinational technology company that develops, manufactures, licenses, and supports a variety of products and services related to computing. In recent years, the company has invested heavily in the Artificial Intelligence (AI) space, with a focus on developing chatbot technology. According to Wedbush, Microsoft’s AI bet has the potential to prove game-changing and is not yet reflected in the current stock price. Wedbush believes that Microsoft’s chatbot technology has the potential to revolutionize the customer service industry. By leveraging the power of artificial intelligence, Microsoft is able to create chatbots that can provide effective and efficient customer service. This technology has the potential to free up employees from tedious customer service tasks and enable them to focus on more important tasks, resulting in greater efficiency and profitability for businesses. As such, Wedbush believes that Microsoft’s AI bet should not be overlooked. Overall, Wedbush contends that Microsoft’s AI bet is proving game-changing and will have a positive effect on the company’s bottom line. With its advanced chatbot technology, Microsoft is able to provide customers with high-quality customer service while simultaneously saving time, money, and resources for businesses.
In addition, Wedbush believes that this technology should be reflected in the current stock price, making now a great time to invest in Microsoft Corporation.
Market Price
On Thursday, Microsoft Corporation‘s stock opened at $375.4 and closed at $375.3, up by a slight 0.3% from the previous closing price of $374.1. This comes despite a general decline in stock prices throughout the month. Microsoft has been investing heavily in AI capabilities over the last few years, and their bet is proving to be game-changing. The company has been leveraging AI to make its products more efficient and powerful and to provide greater value for its customers. This, in turn, has resulted in improved financial performance for the company, reflected in its stock price.
Overall, Microsoft’s AI bet is paying off in the form of improved stock performance. Wedbush analysts have commented on this trend and believe that Microsoft is well-positioned to reap substantial rewards from its strategic investments in AI. This bodes well for both Microsoft and its shareholders, as the company continues to focus on incorporating AI into its offerings. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Microsoft Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 218.31k | 77.1k | 35.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Microsoft Corporation. More…
| Operations | Investing | Financing |
| 94.97k | -19.05k | -18.29k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Microsoft Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 445.79k | 225.07k | 29.71 |
Key Ratios Snapshot
Some of the financial key ratios for Microsoft Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.1% | 18.7% | 44.4% |
| FCF Margin | ROE | ROA |
| 29.0% | 28.4% | 13.6% |
Analysis – Microsoft Corporation Stock Intrinsic Value
At GoodWhale, we provide financial analysis on MICROSOFT CORPORATION stock. Using our proprietary Valuation Line, we have determined that the intrinsic value of the company’s share is around $322.5. This could be due to the recent increase in demand for the stock or investors expecting growth in the future. We advise investors to do their own research and make their own decisions before investing in this stock. More…
Peers
In the business world, there is always competition. For Microsoft Corp, its main competitors are Salesforce Inc, Apple Inc, and DocuSign Inc. While each company has its own strengths and weaknesses, Microsoft Corp must always be aware of what its competitors are doing in order to stay ahead.
– Salesforce Inc ($NYSE:CRM)
Salesforce Inc is an American cloud-based software company specializing in customer relationship management (CRM). As of March 2021, it had a market capitalization of US$153.53 billion, making it one of the most valuable companies in the world. Its Return on Equity (ROE) was 0.08%.
Salesforce was founded in 1999 by Marc Benioff and Parker Harris, and has since grown to become one of the largest CRM companies in the world. The company’s flagship product is its customer relationship management software, which helps businesses manage their customer data, sales, and marketing. Salesforce also offers a number of other software products and services, including a cloud-based development platform, a social networking service, and a customer service platform.
– Apple Inc ($NASDAQ:AAPL)
Apple is one of the world’s leading technology companies, with a market cap of 2.31T as of 2022. It designs, manufactures, and markets a range of mobile communication and media devices, as well as personal computers, portable digital music players, and sells a variety of related software, services, accessories, networking solutions, and third-party digital content and applications. The company has a strong focus on innovation and has been rewarded with a return on equity of 162.51% over the last year. This demonstrates the success of its business model and the confidence that investors have in its future prospects.
– DocuSign Inc ($NASDAQ:DOCU)
DocuSign Inc. is an American company that provides electronic signature technology and digital transaction management services for facilitating electronic exchanges of contracts and other documents. The company has a market capitalization of $9.74 billion as of 2022 and a return on equity of -15.28%. Founded in 2003, DocuSign has over 700,000 customers and more than 85 million users in 188 countries. The company’s headquarters are located in San Francisco, California. DocuSign’s primary product is its electronic signature platform, which enables users to sign, send, and manage documents electronically. The platform is used by businesses of all sizes, including over 90% of the Fortune 500. In addition to its signature platform, DocuSign offers a suite of products for digital transaction management, including contract management, workflow automation, and compliance tools.
Summary
Microsoft Corporation is an attractive investment opportunity due to its leading presence in the tech industry. Analysts suggest that Microsoft’s recent advancements in artificial intelligence (AI) are not yet fully priced into the stock, making it an increasingly attractive option for investors. Wedbush analysts have recently commented on Microsoft’s AI capabilities, calling its chatbot technology “game changing” and forecasting potential for further growth. Microsoft holds a strong portfolio of products with a variety of cloud-based services, digital advertising, productivity, and gaming software offering potential for long-term growth in the tech sector.
