Barclays Maintains Overweight on Microsoft (MSFT), Cites Strong Monetization Potential

Microsoft Corporation (NASDAQ:MSFT) is among the best stocks you’ll privation you bought sooner. On December 5, Barclays maintained its Overweight standing and a $625 terms people connected Microsoft pursuing the company’s announcement of upcoming terms increases for its Office and Microsoft 365 commercialized subscriptions.

These changes, effectual connected July 1, 2026, people Microsoft’s 2nd large subscription terms accommodation since the archetypal motorboat of Office 365 successful 2011. Before this, a terms summation was implemented successful 2022.

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In its December 4 announcement, absorption attributed the terms increases to the important enlargement of merchandise capabilities and stated:

“We are continuously investing and innovating our level for the future. In the past year, we released much than 1,100 features crossed Microsoft 365, Security, Copilot, and SharePoint.” They further stated, “Collectively, these features person accrued the worth of our suites crossed security, productivity, and management. We’re excited astir what’s next—and volition proceed investing successful ways to physique a much secure, productive, and AI-powered future.”

Within the MS 365 suite, the Microsoft 365 F1 program volition spot the astir important terms summation astatine 33% (from $2.25 to $3), an country Barclays highlights arsenic benefiting from beardown nett spot enlargement trends. According to Barclays, the terms summation reflects Microsoft Corporation’s (NASDAQ:MSFT) quality to steadily monetize its AI-driven merchandise leadership, backed by loyal endeavor customers.

Microsoft Corporation (NASDAQ:MSFT) develops and sells a wide scope of software, unreality services, devices, and concern solutions, serving some idiosyncratic users and endeavor customers worldwide.

While we admit the imaginable of MSFT arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.