Microsoft's GitHub Poised for Growth with AI Tools, Analyst Sees $5B ARR Potential
Portfolio Pulse from Anusuya Lahiri
Bernstein analyst Stacy Rasgon has maintained a Buy rating on Microsoft Corp (NASDAQ:MSFT) and set a price target of $406. The GitHub platform and AI companion tools have over $5 billion ARR scale potential over 3-5 years, according to Rasgon. The GitHub Universe user conference could shed light on the popularity of AI coding companion tools like GitHub Copilot, which has attracted over 1 million paid users. GitHub ARR tripled during the first four years, surpassing $1 billion last year, driven by increasing enterprise adoption.
November 06, 2023 | 5:33 pm
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Microsoft's GitHub platform and AI tools have potential to scale ARR to over $5 billion in 3-5 years. GitHub Copilot has attracted over 1 million paid users. Bernstein analyst maintains Buy rating on Microsoft with a price target of $406.
The news is highly relevant to Microsoft as it directly pertains to its GitHub platform and AI tools. The positive outlook from the Bernstein analyst, including a maintained Buy rating and a price target of $406, is likely to have a positive impact on the stock in the short term. The potential for GitHub and its AI tools to scale ARR to over $5 billion in 3-5 years, along with the growing user base of GitHub Copilot, further supports this positive impact.
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