Following a highly profitable year, during which Microsoft Corp’s (NASDAQ: MSFT) stock experienced a remarkable surge, exceeding a 50% increase and reaching a new all-time high at $377, which can be attributed to a set of factors among which the most notable is artificial intelligence (AI) expansion, which was recognized and successfully utilized by Satya Nadella, CEO of Microsoft.
Nadella was appointed to his role in 2014, after which he oversaw lucrative moves such as the acquisition of the Nokia Corp, LinkedIn, and Activision Blizzard, as well as investment in OpenAI, contributing to the increased valuation of Microsoft stock over the years.
Microsoft stock value under two CEOs
The substantial rise in value prompts a question of how much strategic decisions and effective leadership contribute to success.
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According to stock analyst Brendan Schema, the answer can be found in the charts. These charts illustrate the trajectory of MSFT stock value under two CEOs, revealing a noticeable difference, as emphasized in his November 20 post on X.
During the reign of the previous CEO, Steve Ballmer, MSFT stock value dwindled over his 14 years in charge, exhibiting a decrease of -26%, which has seen its price go down from $56 to $37. Notably, this period was plagued by problems such as antitrust charges and the financial crisis in 2008.
The period under the current CEO, Satya Nadella, was nothing short of impressive regarding the performance of Microsoft stock and its increase in value, which amounts to an 886% increase in slightly under a decade, which translates into an increase from $37 at the time of his appointment, to a $377 current price.
Recent developments regarding MSFT stock
In a year highlighted by an AI expansion, Microsoft has benefited from partnering with the artificial intelligence firm OpenAI since 2019 and investing more than $13 billion in it so far. The latest major expansion of the cooperation was announced in January 2023.
In a strategic chess move, Microsoft’s stock soared to unprecedented heights following a pivotal decision: the recruitment of Sam Altman and Greg Brockman, formerly dismissed from OpenAI, the entity behind ChatGPT. Their appointment signals the leadership of a groundbreaking AI research team, ushering in a new era of innovation.
Investors, among whom is Nancy Pelosi, former Speaker of the House, are set to see their initial investments benefit from the recent developments, as they have increased the valuation of the MSFT stock.
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