“On Hold Until Further Notice”: Microsoft Stock (NASDAQ:MSFT) Slumps With Building Delay

Tech giant Microsoft MSFT -1.90% ▼ has been in the middle of a substantial expansion project for some time now. We have likely seen some of the consequences of that already, including the recent shutdowns of Microsoft’s library and its visitor center. But the last five buildings of the planned expansion are also a casualty, reports note, having been “…put on hold until further notice.” The news did not sit well with investors, as share prices slipped over 2% in Friday afternoon’s trading.

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The buildings collectively are known as Sammamish Village, reports note, and they are on hold for the foreseeable future, as Microsoft President Brad Smith noted that there are no short-term plans to actually put the buildings up. Smith noted, “I don’t think we have any imminent plans to add to that or other areas. I do think we’ll have to digest this new change, so to speak, and we’ll get a better sense in the next several months.”

The project, which has been up and running for almost 10 years, was split into four sections, including Sammamish, Washington, Chelan and Whatcom. Most of the other three are either complete or nearly so, but Sammamish is basically just a chunk of pavement on Microsoft ground right now. Four of the buildings were set to be office space, while the fifth was a utility plant. With Microsoft’s return-to-office plan now in place, Microsoft needed to be sure there was enough space for those workers to return to.

What’s With The New Xbox?

Meanwhile, the new Xbox is still in the works, though it is unclear just what exactly is going on with the device. With several new changes in place, it is easy to wonder if anything we have already heard—including the notion that the next Xbox will be able to play PC games from several different marketplaces, including Steam—is still in play.

New Xbox boss Asha Sharma was not exactly helpful on that front, declaring with absolute, unshakable confidence, “The plan’s the plan until it’s not the plan.” Prices, release dates, and more are equally malleable at this point, with no clarity on when the device will launch or what it will cost when it does. With several components still in a state of rampant price flux, and one of Microsoft’s biggest potential competitors the Steam Machine suffering a similar fate, only time will tell just what any of these elements looks like.

Is Microsoft a Buy, Hold or Sell?

Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 33 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 1.19% rally in its share price over the past year, the average MSFT price target of $594.02 per share implies 50.9% upside potential.

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