Microsoft stock could rise 24% in the next year, according to TipRanks. Here are three forces propelling that upside:
- Microsoft dominates a highly profitable industry with an average net profit margin of 31%, according to IBISWorld.
- Microsoft’s software industry dominance could help it add $30 billion to its revenue from its ChatGPT-powered Copilot service.
- Microsoft’s 49% stake in OpenAI could be worth $100 billion, according to TipRanks.
One negative: Microsoft is losing money now on its Copilot due to the very high operating cost, according to the Wall Street Journal. Over time, Microsoft could solve this problem through a combination of price increases and greater operating efficiency.
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