No one really thinks of tech giant Microsoft (MSFT) as a cybersecurity stock. But we may have to reconsider that assessment in light of a new platform Microsoft is set to launch. It is called the Security Store, and it looks to be a one-stop shop for cybersecurity needs. The news proved welcome enough to investors, who gave Microsoft a fractional boost in Tuesday afternoon’s trading.
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The Security Store is pretty much exactly what the name suggests: a set of security-focused software-as-a-service (SaaS) tools, along with artificial intelligence (AI) agents. Front and center in this lineup will be the Microsoft Sentinel system, which also offers its own set of Copilot AI agents to deliver the best protection against the latest threats.
In fact, Microsoft will be pulling in a set of other “ecosystem partners” to help supply the store, including Illumio, Netskope and Performanta, among others. With cybersecurity increasingly vital on general principles—more and more of our lives are lived in this arena—being able to protect ourselves while in that arena takes on a whole new importance.
“Xbox is Dead”
Meanwhile, word from former Blizzard executive, and former Microsoft executive Mike Ybarra suggests that the Xbox is, well, dead. The response from the gaming community did not take this notion well, with some calling Ybarra “the bitter ex.” Another user declared, “Everything is a console if you’re brave enough.” Ybarra, meanwhile, replied, “…you mean confused enough.”
Ybarra’s remarks come at an odd time for Microsoft’s gaming ambitions. Microsoft has never owned quite so much of the gaming landscape, and yet, almost seems to be pulling back on the entire Xbox concept as a whole. But with a new console generation coming into view—typically a console generation lasts about seven years, and we are around five years in now—this one could be wildly different from anything we have seen yet.
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 and one Hold assigned in the past three months, as indicated by the graphic below. After a 22.32% rally in its share price over the past year, the average MSFT price target of $626.78 per share implies 21.74% upside potential.
