Welcome back to the channel that gives away millions of dollars in stock research.
Today we're going to look at a stock teaser from Luke Lango where he claims you can invest in Chat GPT through a secret loophole.
Is there really a secret loophole to exploit when it comes to investing in Chat GPT?
We'll explore this in the video below, and we'll reveal the stock Luke is talking about.
Additionally, we'll talk about the stock so you can determine if it's a good investment or not.
Let's get started!
Before we reveal the stock, let's take a look at the teaser and go over what Luke is saying.
Chat GPT took the world by storm earlier this year and really showed the power of AI.
According to Luke, Chat GPT could create millions of new millionaires over the next few years.
However, there's no way to invest in Open AI, which is the company that owns Chat GPT.
It's a private company, and there are no private shares being offered at the moment.
So Luke claims you must use a loophole to invest in this company.
Revealing "Loophole" Stock
Sadly, there really isn't a secret loophole to invest in Chat GPT and Open AI.
Instead, you're going to be investing in a company that's invested a lot of money in Open AI, and is currently using their technology in their search engine.
The company Luke wants you to invest in is Microsoft.
There are many promises in this teaser about the kind of gains you can get if you invest in the secret Chat GPT loophole, which is Microsoft.
For example, Luke throws around the number 100 X returns many times, but you're not going to get those returns with Microsoft.
It's so huge and makes so much money that expecting 100 times the returns is delusional.
So, is AI going to have a major effect on Microsoft stock, and is it a good investment?
We'll look at that now.
A.I.'s Impact On Microsoft
According to some analysts, Microsoft is well positioned to monetize generative AI, which is a type of AI that can create new content or data from existing ones. Microsoft has invested heavily in OpenAI, a research organization that developed the viral chatbot ChatGPT, and has integrated its technology into its products such as Bing, Edge, Windows, Office 365, Azure and GitHub.
Some analysts estimate that Microsoft could generate $10 billion or more in annual artificial intelligence revenue from developers using its Azure cloud or OpenAI's models, and that generative AI could represent a $90 billion incremental opportunity for the company in 2025. Based on these projections, some analysts have raised their price targets on Microsoft stock and expect it to reach a $3 trillion valuation in early 2024. Morgan Stanley has called Microsoft a "Top Pick" and set a price target of $415, representing a potential upside of 22% from current levels.
Of course, these are just estimates and opinions, and there are many uncertainties and risks involved in investing in any stock, especially one that is influenced by such a dynamic and complex field as AI.
Pros Of Investing In Microsoft
There are many factors to consider when investing in any company, and Microsoft is no exception. Here are some of the pros and cons of investing in Microsoft. We'll start with the pros:
- Microsoft has a strong presence in the enterprise technology market, with its products and services being widely used by businesses of all sizes and industries. This gives it a loyal customer base, a competitive edge, and a steady stream of recurring revenue.
- Microsoft has a strong financial performance, with consistent revenue and profit growth, high margins, and a large cash reserve. It also pays a modest dividend that has grown over time.
- Microsoft has diversified its business into new and exciting areas of growth, such as cloud computing, artificial intelligence, gaming, and digital advertising³. It has invested heavily in OpenAI, which developed the viral chatbot Chat GPT, and has integrated its technology into its products.
- Microsoft has a great moat, scale advantages, and low-risk vendor status in fast-growing and innovation-heavy markets. It also has a strong brand reputation and customer loyalty.
Cons Of Investing In Microsoft
Here are some cons when it comes to Microsoft:
- Microsoft's stock is richly valued, trading at about 37 times its forward earnings as of Dec. 4, 2022. This means that the market has high expectations for its future growth, which could be hard to meet or sustain.
- Microsoft faces intense competition from other tech giants, such as Amazon, Google, Apple, Facebook, and others, in many of its segments. These rivals could challenge Microsoft's market share, innovation, or pricing power.
- Microsoft could face regulatory risks as governments around the world scrutinize the power and influence of big tech companies. It could also face legal disputes or security breaches that could damage its reputation or operations.
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