Microsoft’s Edge Gamble: Stock Dips as MSFT Pushes Browser Incentives—Will It Pay Off?
Microsoft's latest move to prioritize Edge comes with a twist—incentives for users. But Wall Street isn't cheering yet.
When tech giants start bribing users to adopt their products, you know competition's fierce. Microsoft's (NASDAQ:MSFT) stock slipped after revealing plans to make Edge the default—with perks for compliance. Because nothing says 'superior product' like having to pay people to use it.
The strategy? Classic embrace-extend-extinguish—just with crypto-style tokenomics slapped on. Will it work? Maybe. But investors clearly think Microsoft's better off sticking to Azure and AI than playing browser wars 3.0.
Bonus jab: If you need incentives to beat Chrome, you've already lost. Just ask Internet Explorer.
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Users who search for Chrome on Bing, reports note, will see an offer from Microsoft. The offer gives users 1,300 Rewards points in order to continue using Edge. Microsoft Rewards points come from using Microsoft products, and can actually be redeemed for gift cards, or given away as a charitable donation.
The MOVE may not be that crazy. Microsoft’s browser has a 15.48% market share, reports note, while the Chrome browser controls 69.3%. And, in an even odder twist, reports note that using Bing to search for Opera, Brave, Comet, or Atlas does not prompt the offer either. Microsoft appears solely dedicated to pulling market share from Chrome and Chrome alone. I tried searching Chrome on Bing, and instead of the offer, I got offered an invitation to launch Edge instead. Reports suggest that the distribution of offers may be geographically connected, as some are not seeing the offer at all.
Switch Hitting?
In an unexpected twist, the folks at Nintendo (NTDOY) are suggesting that Microsoft may be leaving money on the table by not fully embracing the idea of Switch ports. Not bringing Switch games to Xbox, but rather, exporting Xbox games to Switch. Microsoft started doing this with four games back in 2024, reports noted, but has since expanded its lineup.
Microsoft instead seems more eager to port its titles to Sony (SONY) and its PlayStation lineup. And while this is a more organic fit, there is the possibility that at least some of Microsoft’s games WOULD do well on the Switch platform. Not all of them, certainly, but some. Former Nintendo of America president Reggie Fils-Aime noted, “I’m surprised that Xbox has not yet fully embraced Switch 2 from a software perspective. Certainly some games could easily be ported over to Switch 2. And I’m surprised that we haven’t seen more of that.”
Is Microsoft a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 34 Buys assigned in the past three months, as indicated by the graphic below. After a 19.63% rally in its share price over the past year, the average MSFT price target of $633.14 per share implies 24.77% upside potential.
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