When tech giant Microsoft (MSFT) revealed that it was launching a return-to-office (RTO) mandate like many other companies have done lately, it started an immediate firestorm of response. It started similar firestorms at those other companies as well. But it turns out that, at Microsoft, return does not always mean return. Shareholders were modestly pleased, meanwhile, as evidenced by the fractional increase spotted in Microsoft shares in Wednesday afternoon’s trading.
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Apparently, sales roles at Microsoft are now exempt from the RTO mandates, because “…the nature of work differs from other parts of Microsoft,” noted word from Theresa McHenry with Microsoft’s human resources department. More specifically, commercial sales and solution engineering both got carveouts from the RTO mandate.
Microsoft did not comment on the matter, though McHenry did offer one last bit that makes particular sense, saying, “We are committed to flexibility where it makes sense.” So while most Microsoft employees will be back in the office for at least three days a week starting next spring, many sales staff will not be under the same standard.
Xbox Dev Kits Also Pricier
So remember when we heard about those price hikes on Microsoft hardware? It turns out that it is not just regular players who will be subject to this hike. Microsoft is also increasing the cost of its developers’ kit from the previous $1,500 to the current $2,000. The reason is simple, if not necessarily easy to understand: “Macroeconomic developments” are the listed cause.
This is something of a problem; Microsoft dev kits were already somewhat expensive because they needed to provide testing capabilities for both the Xbox Series X and the Xbox Series S platforms. And all of this comes after Microsoft declared record subscription revenue from the Game Pass plan and improving profits in general.
Is Microsoft a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 34 Buys assigned in the past three months, as indicated by the graphic below. After a 21.92% rally in its share price over the past year, the average MSFT price target of $627.98 per share implies 20.71% upside potential.
