Microsoft-backed OpenAI (MSFT) is turning up the heat on tech giant Google (GOOGL) after making its ChatGPT Search feature free for all users. Previously, the feature was limited to paid Plus and Team subscribers since its October launch. OpenAI’s Chief Product Officer, Kevin Weil, emphasized during a Monday livestream how integral Search has become to ChatGPT, and was excited about making it globally accessible to all users starting today.
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With Google commanding nearly 90% of the global search market and Microsoft’s Bing (MSFT) holding just 4%, OpenAI’s move highlights its growing ambition in the search engine space. Weil noted that improvements were made to the Search feature, which included faster performance, mobile accessibility, and integration with Advanced Voice Mode in ChatGPT for a more seamless user experience.
The update is part of OpenAI’s “12 Days of OpenAI” event, where the company has been rolling out major upgrades each weekday until December 20. Recent highlights include Sora, which is an AI-powered video generator, as well as the launch of ChatGPT Canvas, Advanced Voice with video and screen sharing, and integration with Apple’s (AAPL) latest operating system update.
Investor Sentiment
Interestingly, investor sentiment appears to be souring on both stocks, as 2.9% of investors holding shares of MSFT and 1.6% holding shares of GOOGL decreased their positions in the last 30 days, according to TipRanks data. However, with shares trading near all-time highs, it is likely the result of some profit-taking or portfolio rebalancing.
Indeed, 15.4% of all the portfolios tracked by TipRanks hold MSFT stock, while 7.8% hold GOOGL. In addition, the average portfolio weightings allocated towards them are over 11% and 8%, respectively. This suggests that investors are still very confident about their future.
Is MSFT Stock a Buy?
Turning to Wall Street, Microsoft stock has a Strong Buy consensus rating among 29 Wall Street analysts. That rating is based on 27 Buys and two Holds assigned in the last three months. After a 22% rally in its share price over the past 12 months, the average MSFT price target of $499.19 implies 10.5% upside potential.
