It’s been a crazy weekend in the AI world after OpenAI fired co-founder and CEO Sam Altman without warning late Friday. There was reason to believe he would be returning to the company just 48 hours later before OpenAI’s board of directors squashed that rumor, rejecting Altman’s offer.
Then, tech-giant Microsoft (MSFT) capitalized on the opportunity to bring Altman into their eco-system and lead the company’s advanced research lab. OpenAI president and co-founder Greg Brockman quit in solidarity with Altman and will be joining the Microsoft team as well.
Microsoft has invested more than $13 billion in AI so far, but the company is eager to advance the pace of its efforts to capitalize on the tech with Altman at the helm. CEO Satya Nadella says that despite the hire, Microsoft is still committed to its partnership with OpenAI.
There is reason to believe more OpenAI talent will jump ship and join Altman at Microsoft, as more than 550 of the company’s 700 employees signed a letter threatening to quit if the board did not resign.
OpenAI’s issue with Altman was a lack of transparency and a fear that the technology was moving “too fast”.
Job automation and autonomous warfare are grave concerns of AI technology, but Microsoft is a business – and they have already admitted that speed is their top priority. Nadella says Microsoft will empower Altman with all the necessary resources to move as fast as possible.
Ethics aside, MSFT is up 1.5% to start the week off. This will bolster the trend we’ve witnessed over the past weeks and months, as MSFT is now up 19% over the past few months and 56% in the past year.
So, is this hire enough to justify buying MSFT? We’ve taken a look through the VectorVest stock analyzer and have uncovered a clear answer for your next move – you’re not going to want to miss this…
MSFT Has Fair Upside Potential, Excellent Safety, and Good Timing
VectorVest simplifies your trading strategy by giving you clear, actionable insights in 3 simple ratings. These save you time and stress while empowering you to win more trades.
The ratings are relative value (RV), relative safety (RS), and relative timing (RT). Each sits on its own scale of 0.00-2.00 with 1.00 being the average. This makes interpretation quick and easy.
But, it gets even better. You’re given a clear buy, sell, or hold recommendation based on the overall VST rating for any given stock at any given time. As for MSFT, here’s what you need to see:
- Fair Upside Potential: The RV rating compares a stock’s long-term price appreciation potential (forecasted three years out) to AAA corporate bond rates and risk. It’s a far superior indicator than a simple comparison of price to value alone. MSFT has an RV rating of 1.02, which is considered fair. That being said, the stock is overvalued - its current value is just $227.92.
- Excellent Safety: The RS rating is an indicator of risk. It’s computed from a deep analysis of a company’s financial consistency & predictability, debt-to-equity ratio, business longevity, sales volume, price volatility, and other factors. MSFT has an excellent RS rating of 1.45.
- Good Timing: As you can see from the stock’s performance, MSFT has good timing right now with an RT rating of 1.14. This rating is based on the direction, dynamics, and magnitude of the stock’s price movement. It’s taken day over day, week over week, quarter over quarter, and year over year.
The overall VST rating of 1.22 is good for MSFT, and it’s enough to justify buying this stock right now. Before you do so, though, you’ll want to get your stock analysis free to see the full picture. Transform the way you trade for the better!
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VectorVest advocates buying safe, undervalued stocks, rising in price. MSFT hired OpenAI’s Sam Altman sending ripples throughout the tech world and stock market alike. MSFT has fair upside potential, excellent safety, and good timing right now.
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