Tech giant Microsoft (MSFT) has had its share of ups and downs lately. Demonstrating this is the notion that, somehow, people no longer trust Microsoft Windows, which is the central foundation of not only Microsoft, but also in many ways, modern computing as well. Microsoft is getting back to its roots and focusing on rebuilding trust in Windows again, a development that has investors oddly concerned. Concerned enough, in fact, to send Microsoft shares down fractionally in Friday afternoon’s trading.
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Windows has been the test bed for a lot of new advances lately, many of them focused around artificial intelligence (AI). But all these new advances have come with certain costs, like system reliability, and occasionally, outright system failures. Therefore, Microsoft will now be putting particular focus on “…addressing issues like constant BSODs, strange bugs, and core applications misbehaving.”
Microsoft’s president of Windows and devices, Pavan Davuluri, noted, “The feedback we’re receiving from our community of passionate customers and Windows Insiders has been clear. We need to improve Windows in ways that are meaningful for people. This year you will see us focus on addressing pain points we hear consistently from customers: improving system performance, reliability, and the overall experience of Windows.”
Abandon Xbox
The 25th anniversary of Xbox is increasingly looking like it will be the last major anniversary of Xbox as we know it. A recent survey of game developers shows just where priorities will be focused in the coming years, and overwhelmingly, developers are looking to PC to do the job.
The survey found that 80% of developers were planning to build for Windows PC, while 40% planned to develop for Sony’s (SONY) PlayStation and for the Nintendo (NTDOY) Switch 2. Only 20% were specifically planning to develop for Xbox, which underscores one of the biggest stories of all: the next Xbox is likely to be a gaming PC with some highly specialized features.
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 4.44% rally in its share price over the past year, the average MSFT price target of $603.27 per share implies 39.91% upside potential.
