With Microsoft’s (MSFT) quarterly earnings report set for this Tuesday, investors will be eager to learn more about Copilot, the company’s newest AI subscription service.
Copilot will cost users $30 per month, on top of existing subscriptions. The AI-powered upgrade to Microsoft’s business suite will reportedly enable users to instantly summarize documents, easily generate emails, and speed up Excel analysis.
With this update, here’s the current breakdown of Microsoft plans:
• Microsoft 365 Business Standard: $12.50 per user, per month.
• Microsoft 365 E3: $36 per user, per month.
• Microsoft 365 Copilot: $30 per user, per month, on top of existing plans.
This means that companies using Copilot could practically double their monthly subscription cost. But the tech giant promises the upgrade will be worth the price. According to one executive, “Soon, no one will want to work without it.”
With Copilot set to change the rules for premium AI pricing, investors will also want to hear Microsoft’s take on the new rules for AI proposed by the Biden administration. Under the proposed regulations, major players would have to allow third-party experts to test AI tools prior to public release.
Microsoft, Amazon (AMZN), and Meta (META), among others, have already agreed to comply with these safeguards. With a handful of these companies set to report earnings in the coming days, the week ahead on Wall Street will be one to watch.
Today, the S&P Global (SPGI) manufacturing PMI for the month of May will be released. In June, this metric hit a six-month low, signaling a decline in the health of the manufacturing sector, influenced by inflationary pressure and higher interest rates.
Tomorrow, the home price index for May will be released. In April, this measure of home prices across 20 cities dropped 1.6% on an annual basis — the biggest decline since April 2012.
On Wednesday, the Federal Reserve will decide whether or not to raise interest rates in July. Last month, the vast majority of FOMC participants agreed to pause rate hikes. However, Wall Street is currently pricing in a likely 25-basis-point raise this month. Investors will also get an update for the 30-year fixed-rate mortgage, which currently sits at 6.87%.
On Thursday, the Q2 quarterly growth rate will be released. In the first quarter, the US economy grew at an annualized 2% rate, well above forecasts.
On Friday, the consumer metrics for personal spending and income in June will be released. In May, these metrics rose 0.1% and 0.4%, respectively.
Today, Domino’s Pizza (DPZ) will kick off a busy week of earnings. Executives will offer insight on the pizza chain’s abrupt about-face regarding third-party delivery apps. After years of shunning apps like DoorDash (DASH), Domino’s recently announced a surprising partnership with Uber Eats (UBER) and Postmates.
Tomorrow, Alphabet (GOOGL) will provide counterprogramming to Microsoft’s report. The dueling tech giants will likely spend time discussing their respective plans for generative AI. Notably, Google shareholders will be eager to learn more about the rumors that co-founder Sergey Brin is back to help launch Gemini, another highly-anticipated AI system from Google. Additionally, 3M (MMM) and Raytheon (RTX) will also report earnings.
Wednesday will be another busy day with reports expected from Meta Platforms, Coca-Cola (KO), Boeing (BA), and Hilton (HLT). Investors will be eager to hear more about the initial performance of Meta’s new Twitter-adjacent platform Threads. The social media app amassed 100 million users in its first week, the fastest an online platform has ever done so.
Thursday, investors can expect earnings reports from Honeywell (HON), CBRE Group (CBRE), and Ford (F). Ford’s management is likely to discuss the recent investigation from House Republicans regardings its partnership with a Chinese battery maker CATL, including its potential link to forced labor.
Friday marks another high profile earnings battle, as oil goliaths Chevron (CVX) and Exxon Mobil (XOM) both report. The latter is likely to discuss its recent $4.9 billion acquisition of the carbon storage company Denbury (DEN). Global consumer goods behemoth Procter & Gamble (PG) will also hand in a report card.
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