Microsoft reaching all-time high, time to buy?
Shares of Microsoft $Microsoft(MSFT.US$, a company known for its cloud and artificial intelligence (AI) technology, went up by 5.3% today, reaching a new all-time high. This is the first time it has reached such a high level since late 2021. It's not surprising that Microsoft's stock is rising because they made some exciting AI announcements.
Microsoft talked about the pricing for a new AI-powered tool called CoPilot, which works with their Office software. Microsoft will let people upgrade to the CoPilot tool for an extra $30 per month per user.
This is a big increase in price because their Office subscriptions currently cost between $12.50 and $57 per month per user, depending on the plan. So, if users want to use the AI CoPilot tool, they'll have to pay almost double the subscription price for Office.
These announcements show how the AI technology they're working on can make money, which is attractive to investors.
However, Microsoft’s PE ratio, which is a way to measure how expensive a stock is, is now over 37.46 times. This is much higher than the average of 32 times over the past 5 years. So, investors should be careful and not just blindly follow the rising price.
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