Will Microsoft Reach $1000?
Will Microsoft Reach $1000? Yes, Microsoft Stock will reach $1000. Read on for more details.
Will Microsoft Reach $1000: Latest news
- Microsoft is working on bringing third-party plugins to Windows Copilot, a new AI-powered feature that is currently in preview. The company is currently surveying developers to get their feedback on how to best integrate plugins with Copilot.
- MSFT’s market cap jumps to $2.6 trillion after shares hit record high.
- Microsoft announces partnership with Meta Platforms, under which the social media co’s new AI model LLAMA 2 will be distributed through Azure cloud service and will also be available on Windows operating system. Co also announced a special version of its Bing chat for businesses, with additional privacy and data safety features.
Microsoft stock’s 52-week high price was $315.95, however, Microsoft has failed to cross $300 after retreating from this level. Microsoft however, has strong investor backing which has always been a positive factor leading to its growth of Microsoft.
Microsoft in recent years has been expanding its business wings and this factor is also contributing to increasing the investor’s trust. For MSFT stock to reach $1000 different factors will have to play in favor of Microsoft and Microsoft will have to overcome several obstacles.
Here are a few factors which could help Microsoft’s stock price reach $1000 and a few factors that could derail the MSFT Stock price:
Will Microsoft Reach $1000: Factors in Favor
Success of Microsoft’s Cloud Business: Azure, Microsoft’s cloud computing wing is one of the fastest-growing businesses of Microsoft. Azure is in direct competition with Amazon’s AWS. Amazon AWS has the biggest share of the cloud computing market however, Microsoft is gradually eating up the space with its Azure cloud computing. In the last quarter of 2022, Microsoft increased its share from 23%, up from 21% the prior quarter, while Amazon fell from 34% to 33%.
The cloud computing business is set to witness a massive surge in the coming future. According to Fortune Business Insights, the cloud computing market is expected to see a CAGR of around 17% between 2022 and 2028.
Microsoft and ChatGPT: Microsoft has partnered with ChatGPT the AI took which has taken the entire IT industry by storm. Added to it recently Microsoft integrated AI with its Bing search on Microsoft Edge. Microsoft’s Bing is a rival of Google search and Microsoft with ChatGPT is positioning itself as the best alternative to Google search.
Acquisition of Activision Blizzard – Microsoft’s gaming console Xbox is well-known around the world but it is the PlayStation that leads the gaming world. However, Microsoft is now following an aggressive strategy and has been able to narrow the gap with Playstation.
Additionally, Microsoft is using its financial power over Sony to make acquisitions at Xbox Game Studios. The most important deal is a $68.7 billion offer to buy out Activision Blizzard.
If the deal is completed, Activision Blizzard will give Microsoft a base of 361 million players and help it reach the 1 billion mark. As the gaming industry is shifting from core hardware PC service to subscription service, Microsoft is poised to gain big with its cash power.
Microsoft in Digital AD Business: Google has had sole domination in this field but Microsoft is readying itself to take on Google’s ad services head-on. They acquired digital ad business Xandr from AT&T in 2021. Recently, Netflix announced a plan to come up with an ad-supported version to boost revenue and make up for lost subscribers. In July 2022, they have chosen Microsoft as an option to go with an ad-supported version.
Will Microsoft Reach $1000: Hurdles
Macroeconomics: The year 2022 has been a great example of how macroeconomic factors could affect the stock market. The factors like wars, Government regulations, and climate change are a few factors that can affect the growth of the stock market. In order to reach $1000 the macro factors will have to be favorable.
Fall of Demand for PCs: Consumer demand has fallen across industries due to the rising cost of living, but the PC market is the one with the hardest hit. According to Gartner, PC shipments fell 19.5% in June- September quarter. Therefore, this factor will directly affect the revenue of the company and which will result in affecting the stock price.
Will Microsoft Reach $1000?? EPS Estimate Method
In the last 5 years, EPS growth has been 24.3% annually. Therefore, if the current growth momentum and PE multiples continue, it is likely that MSFT will reach $1000 anywhere between 2028 and 2030.
Despite the tech stocks witnessing a massive downtrend in 2022, Microsoft along with Apple was the few stocks that were least affected. The MSFT stock has a strong foundation and this has been a key factor in increasing the trust of the investors.
Microsoft is currently below $500 but as the market settles, MSFT stock price is likely to rise and in future, Microsoft stock will likely reach $1000.