Microsoft (NASDAQ: MSFT) is among the worst-hit equities among the Magnificent 7 stocks. The software giant has plunged more than 25% year-to-date, and is at its weakest point of the year. It touched a 52-week low of $349, but ended up closing Thursday’s bell briefly higher at $352. Investors are skeptical of MSFT now, as it is getting difficult to pinpoint when it could bottom out. Chances of losing money are higher, as Wall Street’s fears about AI spending are a dark cloud that’s floating above the company.
On the heels of the price decline, analyst Brad Reback from brokerage service and investment banking firm Stifel Nicolaus wrote in a note to clients urging not to sell Microsoft stock, and predicted that it is poised to see a brief uptick and reach a new target. Accumulating MSFT at its lowest point now and holding on to the equity could deliver better gains. The analyst advised clients not to sell Microsoft stock during the downturn. Accumulating it at the dips can prove beneficial, as it widens the window of profit-making.
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What is Microsoft Stock’s New Price Target?
The analyst predicted that Microsoft stock could reach a high of $400 next. He downgraded his price prediction from $415 to $400 due to the ongoing price lag. However, he is still firm that MSFT could climb to the $400 level and recover from the $350 slump. This is among the most bullish projections for MSFT, despite the major price downtick.
The equity fell from a yearly high of $481 in January and has been on a decline ever since then. Traders who took an entry position at any time in 2026 are currently facing losses. Only a few are on the brink of breaking even, but could soon lose it all. The strategists predict that Microsoft stock could rise by 14% in the next leg, turning an investment of $1,000 into $1,140.