Microsoft’s ad revenue set to grow healthily with the help of AI-powered Bing
Microsoft's $Microsoft (MSFT.US)$ Bing search engine has reached a major milestone of 100 million daily active users, following the launch of its AI-powered Bing Chat feature. While Google $Alphabet-A (GOOGL.US)$ still dominates with over 1 billion daily users, this achievement marks a step towards gaining a larger market share.
Microsoft has plans to increase its revenue in the digital ad market, which is worth approximately $500 billion. Bing has already contributed to Microsoft's advertising business, which saw a growth in revenue from $10 billion to $18 billion in the past 12 months.
However, Microsoft still has a long way to go before it can compete with Google, which generated over $200 billion from advertising in 2022.
At the moment, Microsoft's current valuation has a PE ratio of 31 times, which is considered to be a fair value for entry compared to its 5-year average of 35 times.
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