**Microsoft’s Copilot Struggles Amid AI Competition**
Microsoft (NASDAQ: MSFT) is facing challenges with its AI assistant, Copilot, which has attracted only 15 million subscriptions despite the availability of 450 million commercial licenses. Following a decline of 31% in stock value from its peak, the company is transitioning Copilot to a multi-model framework to better compete against rising alternatives like Anthropic’s Claude.
**Financial Insights**
Currently, Microsoft’s stock trades at 23 times its trailing 12-month earnings, approximately 30% below its 10-year average. Analysts project a long-term earnings growth of 13% to 14%, suggesting the stock could be undervalued. However, 45% of its remaining commercial bookings are still tied to OpenAI, posing potential risks for the company moving forward.
