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Microsoft's Strategic Shifts In Privacy And AI Are Driving A 15% Year-To-Date Stock Surge - Microsoft (NA

iconBenzinga

2024-06-12 15:59

Microsoft's Strategic Shifts In Privacy And AI Are Driving A 15% Year-To-Date Stock Surge - Microsoft (NA
  •   Microsoft's partnership with OpenAI has increased its market value and accelerated its innovation efforts.

  •   Microsoft's stock has begun to recover, showing a 4.3% increase in June and a 15% rise year-to-date.

  Microsoft Corp MSFT recently found itself at the heart of a growing debate over privacy and user autonomy. The controversy is due to the Windows Recall feature, designed to boost productivity by letting users retrace their steps through periodic screenshots.

  Though meant to streamline user experience, Recall raised significant privacy concerns, leading them to change its deployment strategy. Now, Recall will be disabled by default on upcoming Copilot Plus PCs.

  Users who want to use it must opt-in and undergo biometric authentication for added security and privacy.

  This decision followed Microsoft's withdrawal of the latest Windows preview, which included Recall, from its Insider Program, showing the company's responsiveness to the backlash and its impact on user trust.

  These events highlight the broader challenges tech giants face as they integrate advanced AI technologies into consumer products.

  The company's recent partnership with OpenAI has boosted its market value and intensified its push to innovate. However, this rush hasn't been without issues.

  Similar to Microsoft, other industry leaders have faced obstacles. For example, Google temporarily paused an AI-driven search feature that unintentionally spread misinformation. After a period of ups and downs, Microsoft's stock is starting to recover. Since March, the stock hit a high of $430 but then entered a consolidation phase, fluctuating between support at $388 and resistance at $430.

  In May, there was a significant attempt to break out of this range, but it eventually reverted and fell back into consolidation, indicating a false breakout.

  On June 11, the stock finally rose above $430 again with a strong bullish candlestick. However, it's still uncertain if this move will sustain and confirm a long-term bull trend.

  The month of June has seen a 4.3% increase so far, leading to a 15% growth year-to-date. Investors are cautiously optimistic, but to confirm a bull trend, the stock needs to keep rising with higher highs and higher lows.

  After the closing bell on Tuesday, June 11, the stock closed at $432.68, trading up by 1.12%.

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