Technology

Microsoft Faces Lawsuit as Stock Dips: What You Need to Know

2025-08-13

Author: Emily

Microsoft Stock Takes a Hit

Microsoft (MSFT) experienced a slight decline in its stock price on Wednesday, affected by a newly filed lawsuit challenging the company's decision to end support for Windows 10. The suit, brought forth by Lawrence Klein, aims to compel Microsoft to maintain support for the operating system long after its planned discontinuation in October.

Windows 10 Users Left Behind?

Despite the launch of Windows 11 nearly four years ago, many users are still tethered to Windows 10, which, according to Klein, constitutes an astonishing 52.94% of all Windows operating system users as of April 2025. The lawsuit insists that Microsoft should continue offering support for Windows 10 until its user base falls below 10%.

Concerns Over Upgrading to Windows 11

Klein’s allegations don’t stop there. He also criticizes Microsoft’s stringent upgrade requirements for Windows 11, which could potentially lead to a significant amount of electronic waste as older devices become obsolete. He argues that this push for upgrades is more about advancing Microsoft's AI initiatives than serving the best interests of its users.

Microsoft Stock: Current Performance

On the morning of the lawsuit announcement, Microsoft’s stock dipped by 0.38%. Despite this minor setback, the company has seen impressive growth this year, boasting a 25.57% increase year-to-date and an impressive 26.96% rise over the past 12 months. Given the complexities of the lawsuit and its timeline, significant volatility in the stock is not expected before Windows 10’s support concludes.

Analysts Weigh In: Strong Buy Recommendation

Looking at Wall Street’s perspective, Microsoft continues to attract strong interest from analysts, earning a consensus rating of Strong Buy. This rating stems from 24 Buy and only one Hold recommendation in the past three months. The average price target for MSFT stock stands at $623.34, which indicates a promising upside potential of 18.26% for investors.