Microsoft (MSFT) is currently grappling with a unique credibility issue, stemming from new developments around its products. Questions have arisen regarding the value of the company’s Office mission, while a shift away from support for the Austrian military office has raised concerns. Shareholders are feeling anxious, as reflected by a slight drop in stock prices during Wednesday’s afternoon trading.
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Recently, Microsoft mandated that employees return to the office at least three days a week. This seems reasonable at first glance—after all, companies invest in office spaces for a reason. However, it creates a bit of a predicament since Microsoft has developed products that support remote work. If the company itself seems to shy away from its own remote work initiatives, it may signal problems for potential clients.
It raises a relevant question: if a chef won’t eat their own dish, should anyone else? Reports indicate Microsoft has long advocated for tools like SharePoint and the 365 Ecosystem as ideal for remote collaboration. Yet, it now appears that the company is sidelining its own remote offerings, aligning with the thoughts of Wildix CEO Steve Osler, who suggests that the focus has shifted to outdated approaches.
Meanwhile, in Austria
There’s another layer to the situation as the Austrian army has opted to abandon Microsoft Office altogether, transitioning to LibreOffice, an open-source alternative with similar capabilities. It has been suggested that Microsoft Office will be phased out from around 16,000 workstations due to this shift.
Though there are exceptions, especially for Microsoft Access and Microsoft Office 2024 LTSC, LibreOffice has gained traction in the realm of open-source office suites. The consideration that Microsoft Office could offer free alternatives aligns with this growing movement.
What’s the outlook for Microsoft stocks?
Taking a look at Wall Street, analysts appear to hold a strong buy consensus on MSFT shares, based on 33 purchases and one hold over the past three months. This comes after a 24.17% rise in share prices over the past year, culminating in an average price target of $627.95 per share.
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