“Quality Overhaul” Coming to Windows 11: Microsoft Stock (NASDAQ:MSFT) Sinks

We know that tech giant Microsoft MSFT -2.44% ▼ has had some issues with Windows 11 lately. Multiple updates have not gone according to plan, and that leaves out the issues around artificial intelligence (AI) integration. But Microsoft also knows how vital Windows is to its overall operation, and plans a “quality overhaul” coming soon. The news left investors concerned, based on the loss of nearly 3% seen in Monday afternoon’s trading.

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A few months back, reports note, Microsoft admitted to certain…shortcomings…when it came to Windows 11. And now, it has a roadmap in place to address some of those issues with a quality overhaul, as some are calling it. The biggest priorities, according to executive vice president of Windows and devices Pavan Davuluri, include speed of startup, stability under workload, and consistency and thoughtfulness of the overall experience.

While this is certainly vital, there are those who wonder if this is nothing more than a PR-based calmative for a market that is starting to question why Windows needs to be on every computer. After all, they note, the sheer complexity of Windows may make some improvements cosmetic, token, or even largely unnoticeable.

Abandon Platform Redux

Meanwhile, more news is shaping up in Xbox, as reports note more leadership is departing the company. Both vice president Lori Wright and general manager of gaming AI Haiyan Zhang are out the door at Microsoft. These resignations come not long after both Phil Spencer and Sarah Bond departed the company.

Wright did not mention where she would be going next, but Zhang did. Zhang will be heading out to join the gaming team at Netflix NFLX -2.05% ▼ , which is particularly interesting given that Netflix’s gaming ambitions have been visibly curtailed of late. But this may mean less cancellation, more refocusing, as word of Netflix’s plans to focus on narrative-driven experiences could be helped with Zhang’s addition to the team.

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 three Holds assigned in the past three months, as indicated by the graphic below. After a 3.08% loss in its share price over the past year, the average MSFT price target of $586.41 per share implies 57.17% upside potential.

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