Tech giant Microsoft (MSFT) has been having a serious issue with security lately, as new reports said that Microsoft issued updates to fix over 1,400 security vulnerabilities. This is a new record for Microsoft and by a substantial margin, as the previous record, hit just last month, featured around 1,000 fixes. That by itself was about 10 times what Microsoft normally patches. Microsoft stock slipped modestly in Wednesday afternoon’s trading. Microsoft has posted a 5.85% rally in its share price over the past year.
Another Huge Batch of Patch
Reports noted that at least 78 of the flaws that Microsoft patched up this time around were considered “critical,” which meant that they could be used with very little, if any, action on the part of the user. Many of those bugs labeled “critical” were also very good at giving an attacker the ability to bring in their own code to a targeted system.
One of the weaknesses in question was also considered a zero-day bug that had already been used in the wild. Labeled CVE-2026-96951, it is used in Windows Shell as a security feature bypass that works on Windows 10 and 11 systems, as well as some servers. Microsoft pointed out that AI assistance has helped find large numbers of bugs. Some security analysts are concerned that perhaps Microsoft is finding too many to try and address at once, which is putting a strain on security teams and development.
A Skunk Works for Xbox?
Meanwhile, Microsoft’s Xbox division has an exciting new plan to help find the next generation of useful features. Known as Xbox Labs, the new platform will give Microsoft an opportunity to try new ideas and new technology in a fashion that lets it get a better handle on what will work and what will not.
The team at Xbox Labs will be tasked with “…rapid development, iteration, and testing of tools, products, and features that will be judged by the reaction of end users,” reports noted. This could be good news for Microsoft, depending on how closely it sticks to what the feedback says it should and should not go with. After all, Microsoft is trying to rebuild trust in the gaming community after several recent missteps. A move like this might help it get there.
Is Microsoft a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 35 Buys and two Holds assigned in the past three months, as indicated by the graphic below. The average MSFT price target of $588.56 per share implies 9.8% upside potential.
