Microsoft (MSFT) Stock: Why this analyst lowered forecasts

3 Min Read
3 Min Read

The US stock market has become increasingly unstable in the first three months of 2025. This has overshadowed the projections of continued uncertainty amid geopolitical tensions and a vulnerable US economy. Microsoft (MSFT) has since recently received a price reduction and outperform rating, bringing the stock to $475.

According to Wedbush, the MSFT target has been removed from the previous $550 to the current $475. Their outlook notes that analysts are driven by ongoing economic challenges that impact the market. The epic Seven struggles to navigate the continuous turbulence, and Microsoft (MSFT) is no exception. Due to continued uncertainty regarding US tariffs, the US stock market continues to see red. Therefore, Microsoft is facing mixed sentiment from analysts, with the $2.9 trillion company facing what experts call the “economic Twilight Zone.”

Additionally, Microsoft has raced top companies due to market capitalization, and the recent market decline has helped its lawsuit. Currently, MSFT is less than $100 million for Apple (AAPL) for the largest US company due to its market capitalization. Due to the recent market collapse, Apple Inc. has dropped out of the $3 trillion market capitalization club. The market recession is hurting stocks, but fortunately, Microsoft has been useful in that area.

So, the question is, will things turn out better for Windows developers? Microsoft appeared last year as one of the leaders of artificial intelligence. The company created a wave when it became an early investor in ChatGpt developer Openai. Furthermore, AI investments are driving the success of the crowdsector. A recent report shows the company acknowledged a $24 billion increase from $24 billion in the first quarter. These factors may be pointing Microsoft and MSFT stock in the right direction for the rest of 2025.

See also  Within China's six-point plan for a "new era" to secure power in global finance

According to CNN, 92% of analysts currently have a stock purchase valuation. Additionally, it holds a median target of $500, an increase of 32% from its current position. At the high end, there is a 59% upside and a $600 forecast. Additionally, the low-end price range this year was $415, an increase of 10% from the recent decline.

Share This Article
Leave a comment