Key Stats for Microsoft Stock
- Price change for Microsoft stock in last 6 months: 41%
- $MSFT Stock Price as of Sep. 25: $516
- 52-Week High: $554
- $MSFT Stock Price Target: $577
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What Happened?
Microsoft (MSFT) launched an updated Copilot app on Friday. It combines coding and complex work tasks in one place.
Until now, Microsoft sold two separate products. Microsoft 365 Copilot helped with office work, and GitHub Copilot helped with coding.
The new app brings them together. CEO Satya Nadella had described this idea in June as a Copilot “super app.”
The app has a few main parts:
- Code lets non-technical users start simple programming projects.
- Cowork handles more complex, multistep tasks.
- Autopilot lets users build custom agents that can work in Teams and Outlook.
Pricing is changing too. Microsoft 365 Copilot costs $30 per user per month.
But Cowork, Code, and Autopilot will be billed based on customer usage.
Copilot hasn’t taken off the way Microsoft hoped. Fewer than 7% of more than 450 million commercial Office 365 seats pay for the AI add-on.
Meanwhile, rivals are moving fast.
OpenAI and Anthropic offer easy-to-use products that bundle many features. Meta’s new Muse app shot to the top of Apple’s App Store.
A Microsoft executive admitted that adding coding to the app is a case of playing catch-up.
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What the Market Is Telling Us About Microsoft Stock
Microsoft stock has lagged this year. It’s up just 9%, trailing the Nasdaq and most megacap peers.
That’s surprising, given how strong the business is. In the June quarter, revenue grew 18% to $90 billion.
Azure, Microsoft’s cloud business, grew 43%.
Microsoft expects Azure growth of about 45% next quarter.
Copilot is also picking up speed. Paid seats topped 30 million last quarter, and new seat additions more than doubled from the prior quarter.
GitHub Copilot now has 50 million users.
The concern is spending. Microsoft spent $41 billion on capital projects last quarter.
It expects about $175 billion in calendar 2026. Investors want proof that AI products can earn that money back.
That’s why this app matters for Microsoft stock.
If usage-based pricing gets more Office customers paying for AI, it could unlock a much larger market.
Satya Nadella said the combined seat-plus-usage model makes the opportunity “much more expansive.”
For now, Microsoft stock investors will watch adoption closely. Frontier program customers get access in the coming weeks.
If the rollout goes well, Microsoft stock could finally start to catch up.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
