Microsoft Shares Drop Over 3% After Xbox Price Increase, Stifel Cuts Target
MSFT•Microsoft shares fell more than 3% after the company raised Xbox console prices, citing surging component costs. Stifel cut its price target to $400 from $415 while maintaining a Hold rating, reflecting concerns over margin pressure from higher hardware expenses.
1. Stock Reaction
Microsoft stock declined by over 3% on Thursday following the announcement of a price increase for Xbox gaming consoles, a move aimed at offsetting rising component costs. This marks one of the steepest one-day drops for the stock in recent weeks as investors reacted to potential headwinds for the hardware segment.
2. Analyst Response
In response to the price hike, Stifel reduced its price target on Microsoft shares to $400 from $415 and upheld a Hold rating. The firm cited concerns that higher hardware costs could pressure profit margins and dampen consumer demand for the upgraded consoles.
