A Study on the Impact of the Release of ChatGPT-4o on Microsoft’s Stock Price

Purpose - The objective of this study is to examine and analyze the factors behind the volatility of Microsoft’s stock price, especially the impact of the release of ChatGPT-4o on the stock price, and to explore the changes in the value of the investment through the theory of value investing, combined with the financial analysis method and the valuation analysis method. Design/Methodology/Approach - This study first introduces the background of Microsoft and the release of ChatGPT-4o, followed by an event study approach by analyzing the fluctuation of Microsoft’s stock price before and after the release, combined with the market reaction. Findings - The results indicate that the release of ChatGPT-4o had a short-term impact on Microsoft’s stock price, leading to some degree of volatility. This volatility may reflect investors’ expectations and reactions to the event. Despite the low volatility of the stock price, the market performance was relatively unstable in the short term. Research Implications - The results of this study contribute to the understanding of the causes of short-term volatility in Microsoft’s stock price, particularly focusing on the impact of the ChatGPT-4 release on the stock price. This contributes to investors’ better understanding of market changes and enables them to adjust their investment strategies promptly to deal with short-term market volatility more effectively.