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Microsoft: great potential, CEO sells and problems with Activision in the UK

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Microsoft is placed at 6% of its lows for the year recorded last June. It is not that its level is much lower than that of other technology companies, better than Meta and Google, but worse than Apple, for example, but the truth is that since last August 15 the value has already lost in the market 14% of its price.

The tension of a new rate hike in the United States of 75 basis points, more abrupt than initially expected, continues to weigh on this company, which needs liquidity and debt in equal parts to continue growing. And even more so when he has ahead of him the great company of completing the acquisition announced last January of Activision Blizzard, the video game company of franchises such as “Call of Duty”, “World of Warcraft” or “Diablo”, among others.

Microsoft recommendations and value target price
Microsoft recommendations and value target price

The amount of 69,000 million dollars to be paid is a step in the future direction towards a video game industry with multiple areas in which to gain ground, with its current power, also in the metaverse and beyond consoles, cloud and PCs. An operation that will make it the third largest company in the world by revenue after Sony and Tencent. All this in addition to cash paying 95 dollars per share in what is, without a doubt, the largest operation of its kind in the entire history of the video game industry.

But all this also, waiting for the competition authorities to authorize it. And there just came one of the problems. The British competition regulator has pointed out that this purchase could harm competition in game consoles, subscription services and cloud gaming and should therefore be fully investigated.

From the company they consider that the idea is not to limit access, but rather that people can access them more, so, on the company’s blog, they published a note giving their opinion on that purchase, on September 1, indicating its commitment to making Call of Duty, for example, available on the same day on Sony-owned PlayStation as it is on an Xbox, its console division.

In its stock chart we see that Microsoft loses 2.5% in the week, almost 12% in the last month, 5.8% in the quarter and the annual cuts already reach 24.2% for the value.

Meanwhile, in terms of recommendations, we highlight the latest that has reached the market and is issued by the New York firm Jefferies. Consider a buy of Microsoft shares with a target price of $320, which gives its shares a 27% upside potential. The analyst at the firm Brent Thill points out that, although the company’s shares are still under pressure, the truth is that it will only change when companies have lowered market expectations sufficiently in the face of the difficult economic environment.

From Tipranks we see that the majority of the 29 analysts who follow the stock opt to buy. Specifically, 27 and two more choose to recommend keeping it in their portfolio. As for its target price, it reaches 324.32 dollars per share, with potential advances of 27.6%.

Already from Guggenheim they begin to cover the value with a neutral advice on Microsoft and a target price of 292 dollars per share. To this we add the sale, in the last week, of 56,999 shares at an average price of 257.71 dollars by the CEO of the company Satya Nadella, for a sale amount of 14.69 million dollars. Following the sale of his half stake in the company last November, Nadella still owns more than 830,000 Microsoft shares with a market value of $212 million.

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