Shares of Microsoft (MSFT) bounced back slightly on Wednesday after the tech giant denied a report claiming that it had lowered sales quotas for software tied to artificial intelligence. The report, published by The Information, said that Microsoft had reduced these targets after some customers were slower to spend on AI tools and several salespeople missed their goals. It also claimed that missed quotas were seen across multiple departments, including Microsoft’s Azure division, according to sources familiar with the matter.
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In response, a company spokesperson said that Microsoft has not changed its overall sales quotas or targets for its staff. The spokesperson also criticized The Information for confusing sales growth with sales quotas by calling it a misunderstanding of how a sales team is structured and compensated. Indeed, Microsoft said that it clearly informed the outlet before publication that AI sales quotas had not been lowered.
Despite the denial, the original report had already caused Microsoft’s stock to dip earlier in the day. The story suggested that Microsoft was adjusting its expectations for how quickly customers would adopt AI tools, which raised concerns about sales momentum. However, Microsoft’s statement appears to have reassured investors and helped the stock recover some of its earlier losses.
Is MSFT Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 33 Buys and two Holds assigned in the last three months. Furthermore, the average MSFT price target of $629.98 per share implies 30.6% upside potential.
