Microsoft Stock (MSFT) Stalls on Melius Hold Rating amid Copilot Shake-Up

FomoAnxiety · 2026-03-23T22:45:56+00:00

Microsoft's shares gained slightly amid a reorganization of teams for its Copilot AI amid competition from Google and OpenAI. Analyst Ben Reitzes lowered the price target, citing internal issues and uncertainty about Copilot's future.

FomoAnxiety

2026-03-23 22:45:56

Abstract generation in progress

Microsoft’s MSFT +0.31% ▲ shares struggled to eke out a 1% gain on Monday. This came after Melius Research reaffirmed its Hold rating on the stock, arguing that the tech giant’s executive reorganization for its struggling Copilot AI assistant “doesn’t seem like it was into strength.”

Claim 30% Off TipRanks Premium

Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

Last week, reports emerged that Microsoft was shaking up teams and combining engineering groups, with Mustafa Suleyman, the head of Microsoft AI, tasked with focusing his energy on “superintelligence” and generative AI efforts. Meanwhile, Jacob Andreou, a former executive at Snap (SNAP), was tapped to oversee the combined commercial and individual Copilot service.

The move came as adoption of Copilot had become shaky at a time rival offerings from Alphabet’s GOOGL +0.36% ▲ Google and startup OpenAI were gaining ground.

Reacting to the move, Melius’ four-star-rated analyst Ben Reitzes trimmed his MSFT price target from $430 to $400, implying about 4% upside. Reitzes sees the move as reflecting internal issues with Copilot.

The analyst also thinks the move fails to show strength, as it also comes at a time when the tech giant is reportedly considering dragging Amazon AMZN +2.79% ▲ and OpenAI to court over a $50 billion cloud deal between both companies that it believes could disrupt its own long-running collaboration with the latter.

Disclaimer & DisclosureReport an Issue

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

1 Likes