Microsoft (MSFT) stock was up on Tuesday despite a warning from Xbox head Asha Sharma. The leader of Microsoft’s gaming division told Game File that “Memory costs will impact pricing, will impact availability” of Xbox’s Project Helix, the company’s next-generation video game console.
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Xbox’s memory problem isn’t a unique one. The entire tech industry is suffering a shortage, largely due to memory being scooped up en masse by developers of AI data centers. This has triggered increased prices across the sector, as both enterprise and commercial customers struggle to find enough memory for their plans.
Sharma also highlighted that the ongoing memory issue, as well as other factors, have affected the development of Project Helix. She stated, “So we’re not ready to share a launch timeline right now. The world’s pretty dynamic. My number one focus, though, is to focus on what’s in our control, build a great console to play great games, including your PC games.”
Microsoft Stock Movement Today
Microsoft stock was up slightly on Tuesday but was still down 11.91% year-to-date. However, the stock was still up 7.81% over the past 12 months.
MSFT stock trading activity today was muted, as some 8.94 million shares changed hands, compared to a three-month average daily trading volume of about 31.77 million shares.
Investors will also keep in mind that Microsoft is set to report earnings after markets close tomorrow. Wall Street expects adjusted earnings per share of $4.05 alongside revenue of $81.4 billion.
Is Microsoft Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Microsoft is Strong Buy, based on 33 Buy and two Hold ratings over the past three months. With that comes an average MSFT stock price target of $565.77, representing a potential 32.93% upside for the shares.
