Tech giant Microsoft (MSFT) is a very widely dispersed organization, particularly in its video gaming operations. Microsoft owns somewhere around 40 studios, at last report, and that can mean some tension between divisions. One of those tensions recently boiled up in the form of an open letter from Arkane Studios criticizing Microsoft for its connections to Israel. Investors were less than concerned, though, and sent shares up fractionally in Thursday afternoon’s trading.
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Arkane Studios, via members of the company union STJV, released an open letter calling on Microsoft to drop its support of Israel. Arkane’s STJV elements joined what are known as Boycott, Divestment, Sanctions (BDS) operations, as well as the No Azure for Apartheid movement, calling on Microsoft to “…stop supporting the Israeli regime.”
Further, the open letter from Arkane cited concerns about the employees’ “reputation and work,” which it believes could be impacted by Microsoft’s association with the Israeli government. This is not the first time such concerns have been raised. Microsoft investigated its connections therein as far back as May, reports note. Indeed, Microsoft’s internal review found that it did provide the Israel Ministry of Defense (IMOD) with “…software, professional services, Azure cloud and AI services….” However, the report noted there was “…no evidence to date” that said technologies were used to “…target or harm people.”
107 Vulnerabilities for Patch Tuesday
Meanwhile, reports also emerged about the recent Patch Tuesday event, in which Microsoft managed to not only find but seal up fully 107 separate vulnerabilities. This may sound like a catastrophe in the making, but Microsoft noted that none of these vulnerabilities had actually been used in the field. Microsoft plans its next Patch Tuesday for September 9, 2025.
The fixes came out for Windows 10, Windows 11, and Windows Server. Naturally, Microsoft is still recommending all users move to Windows 11 24H2, but considering that Microsoft is currently being sued over that recommendation—thanks to the upgrades in hardware that will almost certainly be required to make it happen—just how far it will go remains to be seen.
Is Microsoft a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 34 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 23.64% rally in its share price over the past year, the average MSFT price target of $623.34 per share implies 18.94% upside potential.
