MSFT's 3,000x Market Value Added To Gen AI Revenue Multiple
MSFT is enjoying a 3,000x MVA to Gen AI Revenue multiple.
Let’s assume that MSFT added 500K Copilot Pro subscribers in the March 2024 quarter and that it will add another 500K Copilot Pro subscribers in the June 2024 quarter.
Those 1 million Copilot Pro subscribers equal $240 million of annual revenue.
Let’s assume MSFT is generating $250 million from Gen AI APIs. Thus, in total, MSFT is enjoying a Gen AI revenue run rate of approximately $500 million.
MSFT shares have added approximately $1.5 Trillion in Market Value over the past year.
$1.5 Trillion over $500 million = 3,000. MSFT is enjoying a Market Value Added to Gen AI Revenue multiple of 3,000x.