Microsoft (NASDAQ:MSFT) stock continues to garner analysts’ favor for its advancements in generative artificial intelligence. With over 1 million Copilot subscribers by October 2023, Microsoft’s revenue outlook is strong. MSFT stock is a solid long-term growth investment with a 14% year-to-date return and 0.7% dividend yield.
With the ability to monetize AI, Microsoft is well-positioned for long-term growth. The stock also has excellent ratings, with Keybanc raising its price target to $490 and Morgan Stanley (NYSE:MS) at $520. Here’s why I think those price targets could be light, over the long-term.
Ads in Windows 11 Start Menu
Microsoft has begun testing ads within the Start menu on Windows 11, using the Recommended section to suggest apps from the Microsoft Store.
Initially limited to Windows Insiders in the Beta Channel in the US, these ads can be disabled in Windows 11 Settings. Microsoft seeks feedback on the feature’s reception, potentially adjusting or removing it based on user response.
Last year, Microsoft began testing ads within the File Explorer of Windows 11 but later discontinued the experiment in beta versions. This aligns with Microsoft’s decade-long history of experimenting with ads within Windows.
With ads already in Windows 10’s lock screen and Start menu, their appearance in Windows 11 isn’t unexpected. Feedback from Windows testers will determine whether these ads are included in the final version of Windows 11.
Microsoft Copilot Pro
Microsoft Copilot Pro, a premium subscription, enhances Copilot performance, offers faster image generation, and enables custom Copilot GPT designs. Integrated into Office web and mobile apps, it expands usability for users.
Tailored for individuals seeking advanced AI capabilities, Copilot Pro enriches user experiences in various tasks.
Microsoft stated that Copilot Pro offered advanced features to users seeking the latest in generative AI. It ensured a unified experience across all devices and apps, with web access for real-time information.
While tailored for individuals, Copilot Pro also provided commercial data protection for users with a Microsoft Entra ID, ensuring secure corporate usage.
Buy MSFT Stock in a Heartbeat
Microsoft’s foresight in generative AI investments proves strategic. Holding or adding Microsoft shares is advisable, for those with a long-term investing time horizon.
Microsoft has expanded its influence as a frontrunner in AI, drawing parallels to past tech giants’ successes. Buyers, holders, and traders can assess Microsoft’s stock status accordingly.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.