Microsoft Corporation (MSFT) Acquires AI-Powered Keyboard Developer SwiftKey

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While artificial intelligence seems to be a trend that many tech firms are jumping onto, one may not immediately equate a predictive keyboard to AI. With that said, one small company called SwiftKey has been doing just that, and today it appears as if Microsoft Corporation (NASDAQ:MSFT) will be acquiring them.

Reports coming to us from the Financial Times have indicated that Microsoft Corporation (NASDAQ:MSFT) has acquired SwiftKey for around $250 million. Just what the company will using the technology for is still unknown, especially since Microsoft already has their own predictive keyboard software that’s been quite successful. It is likely that Microsoft Corporation (NASDAQ:MSFT) may be more interested in the AI technology powering the keyboard for use within other applications and software.

Shares of Microsoft Corporation (NASDAQ:MSFT) are trading at $53 in the pre-market this morning. The stock closed at $53 during the last trading session. It is up 19.45% since June 29, 2015 and is uptrending. It has outperformed the S&P500 by 28.32%.

From a total of 18 analysts covering Microsoft Corporation (NASDAQ:MSFT) stock, 14 rate it a “Buy”, 1 a “Sell”, and 3 a “Hold”. This means that 78% of the ratings are positive. The highest target price is $66 while the lowest target price is $20. The mean of all analyst targets is $54.87 which is 3.53% above today’s ($53) stock price. Microsoft Corporation was the topic of 36 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Morgan Stanley upgraded shares on January 13 to a “Overweight” rating. Vetr upgraded shares to a”Strong-Buy” rating and a $47.60 target share price in their report from a September 2. Barclays Capital maintained MSFT stock in a recent report from January 6 with a “Overweight” rating. Global Equities Research maintained the rating on August 28. Global Equities Research has a “Overweight” rating and a $50 price target on shares. Finally, Goldman Sachs upgraded the stock to a “Neutral” rating in a report they issued on a December 18.

The institutional sentiment increased to 1.08 in Q2 2015. It’s up 0.32, from 0.76 in 2015Q2. The ratio increased, as 69 funds sold all their Microsoft Corporation shares they owned while 801 reduced their positions. 93 funds bought stakes while 843 increased their total positions. Institutions now own 5.20 billion shares which is 8.27% less than the previous share count of 5.67 billion in 2015Q2.

Cook & Bynum Capital Management Llc holds 25.5% of its total portfolio in Microsoft Corporation, equating to 717,081 shares. Rwwm Inc. owns 895,414 shares representing 19.69% of their total US portfolio. Moreover, Valueact Holdings L.P. has 19.37% of their total portfolio invested in the company, equating to 75.27 million shares. The California-based Smithwood Advisers L.P. has a total of 17.28% of their portfolio invested in the stock. Deccan Value Investors L.P., a Connecticut-based fund reported 2.26 million shares owned.

Microsoft Corporation is engaged in developing, licensing and supporting a range of software services and products. The company has a market cap of $432.72 billion. The Firm also creates and sells hardware, and delivers online advertising to the customers. It has 37.74 P/E ratio. The Firm operates in five divisions: Devices and Consumer Licensing, D&C Hardware, D&C Other, Commercial Licensing, and Commercial Other.