Turns out that, when a major software provider like Microsoft (NASDAQ:MSFT) puts a particular emphasis on security, investors get pretty happy about it. Microsoft offered up a lot of commentary ahead of its new focus on security, and investors sent shares up over 2% in the closing minutes of Friday’s trading.
Security is now a “top priority” at Microsoft, noted one report, to the point that current CEO Satya Nadella put out a memo to make it perfectly clear. In fact, it’s so clear that Microsoft staffers’ pay is now directly connected to security, at least in part. Senior leadership will be partially compensated based on achieving some key metrics in security.
One key response will be developing new features and adding cybersecurity leaders to its product groups. Nadella’s memo, meanwhile, went so far as to note that “if you’re faced with the tradeoff between security and another priority, your answer is clear: Do security.”
A Handheld Xbox?
Of course, it’s not just security at Microsoft right now; top priority or not, it’s still got a wide range of products to be worked on. Gaming is still a big part of Microsoft’s operations, and it’s got a full slate of releases planned for the rest of 2024. With Microsoft’s Xbox showcase even just over a month away on June 9, release dates for several games may come with it. That includes the “Perfect Dark” reboot, the anticipated “Clockwork Revolution,” and the long-awaited “State of Decay 3.” There’s even word about a potential Microsoft handheld gaming platform in development.
The exact specs, or even a release date, are unclear. But given that this isn’t the first time we’ve heard about such a thing—early word started spilling from a Federal Trade Commission document back in 2023—it may be that we’re one step closer to seeing it go live.
Is Microsoft a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 31 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. After a 34.2% rally in its share price over the past year, the average MSFT price target of $489.56 per share implies 20.36% upside potential.
