Shares of Microsoft Corporation (MSFT) rose at the close of Tuesday's session, setting a new record, after the software company announced the prices of Office programs supported by artificial intelligence services, which prompted analysts to expect additional gains.
The stock rose by nearly 4% to end the day's trading at $359.49, setting a new record, and raising its gains since the beginning of the year to nearly 50%.
The gains came after the company announced an additional subscription fee for the “Copilot” service of about $30 per month for each user. Subscribing to the service can increase the monthly prices for institutional customers by up to 83%, which generates additional revenue through periodic subscriptions.
According to Market Watch, Dan Ives, an analyst with Windbush Securities, said in a note: “We view initial pricing details as very bullish which could increase Microsoft's cloud revenue annually by 20% by 2025 based on At our discretion.”
Microsoft is working to support the Office 365 suite of business programs with artificial intelligence technologies through the “Copilot” service, whose capabilities include arranging incoming emails, summarizing meetings, analyzing spreadsheets, submitting written prompts and designing presentations.
