Dai Yongyuan
Microsoft (NASDAQ:MSFT) According to Barclays, investing in advertising poses a potential $50 billion opportunity over time, especially given antitrust issues.
“The company has revamped its search service with new generative AI capabilities and continued antitrust enforcement. Google lawsuit (google) (Google) search dominance raises the stakes for a potentially greater competitive opportunity for Microsoft,” Barclays analyst Raimo Renshaw said in a note.
stock 0.3% drop in early trading Wednesday.
Google’s current legal entanglements with the US Department of Justice, combined with the European Union’s Digital Markets Act, could present an opportunity for Microsoft’s Bing to gain greater market share.
Additionally, a series of acquisitions has allowed Microsoft to “quietly accumulate valuable advertising,” Lenshaw said. These include LinkedIn, PromoteIQ, and Xandr.
When you combine all of this, Microsoft’s advertising offers a $30 billion organic revenue opportunity and a potential $20 billion windfall.
Barclays maintains an “overweight” rating on Microsoft and a $475 price target.
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