Microsoft Stock Slides 4.5% on Thursday; Stifel Cuts Price Target to $400, Xbox Prices Rise Up to $150

According to Stifel, Microsoft (MSFT) shares fell 4.5% during Thursday afternoon trading, with the stock closing down 3.66%. Stifel lowered its price target on Microsoft to $400 from $415, citing revised and weaker-than-expected margin assumptions for fiscal 2027 following Oracle's recent earnings guidance.

The decline also reflected Microsoft's announcement of global Xbox price increases effective August 1, with 512 GB models rising $100 and 1 TB versions climbing $150. Microsoft attributed the hikes to surging storage and memory chip costs, which have increased more than 2.5 times, with further increases expected ahead.