Microsoft Stock Drops 4.5% Amid Xbox Price Hikes

Microsoft's stock price took a hit on Thursday, falling nearly 4.5% during trading after Stifel lowered its price target for MSFT to $400 from $415.

The revised target still implies around 9% upside from MSFT’s Wednesday close. The firm cited weaker-than-expected margin assumptions for FY27 as the reason for the revision.

Microsoft also announced that it will raise Xbox console prices globally starting August 1, with 512 GB models going up by $100 and 1 TB versions rising by $150.

The company stated that storage and memory costs have surged sharply, forcing the pricing move despite months of negotiations with suppliers.