Tech giant Microsoft (MSFT) has been laying off workers at a surprising clip, even as it presents a world where the future is artificial intelligence (AI). And the layoff train is still going on up to today, as Microsoft announced a comparatively tiny additional package of layoffs. The news did not sit well with investors, who actually sent Microsoft shares down fractionally in Tuesday afternoon’s trading.
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The latest round of layoffs comprises just 40 positions, and all based in Washington, noted a report. Back in May, Microsoft announced plans for a 6,000-strong layoff. Microsoft then boosted its own plans, calling for an additional layoff of 9,000 in July. With those numbers for comparison, 40 seems almost minor. Yet at a time when Microsoft is announcing record revenues and profits, as well as soaring development in AI, it likely does not sit well with those let go at all.
A statement from Microsoft about the latest layoffs noted, “Organizational and workforce changes are a necessary and regular part of managing our business. We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners.”
A Console, or a PC?
News about the next Xbox release, meanwhile, is continuing to draw interest from people wondering if the console wars may truly be over as Microsoft starts releasing what is basically a gaming PC with a really specialized user interface. Granted, all consoles could be described in such fashion, but the latest news suggests that the next Xbox will likely have a lot more flexibility than its predecessor did.
At the root of the next Xbox, or so the latest rumors suggest, is a Magnus APU that will actually give the next Xbox the kind of power and value that is required to compete with PCs. Apparently, the next Magnus APU is not only larger, but is also specifically designed in such a fashion to provide more power and capability than the previous model. That is nothing new, but apparently, this will be so much more advanced that it is worth noting. Reports even suggest that, based on the new design, future upgrades might come out faster than they have before.
Is Microsoft a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 33 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 34.04% rally in its share price over the past year, the average MSFT price target of $624.11 per share implies 17.42% upside potential.
