By Keithen Drury
Publication Date: 2026-02-04 00:15:00
Microsoft’s recent 10% sell-off offers a great potential stock-buying opportunity.
Microsoft (MSFT 2.86%) has been one of the best tech stocks to own over the past five years. Although its performance during that stretch doesn’t stack up to Nvidia‘s, it has still done quite well.
Before a sell-off following Microsoft’s fiscal 2026 second-quarter earnings (for the period ending Dec. 31) release, its stock had more than doubled in value over the past five years. Following the sell-off, the five-year return has fallen to about 85.5%, just barely underperforming the S&P 500, which is up 87% over the same time frame.
I think this sell-off is a bit absurd, and now is the perfect time to buy the dip on the stock. I have three reasons it’s an excellent choice now, and I think it can easily return to market-beating status over the next few months.
Image source: Getty Images.
1. Microsoft’s cloud-computing revenue is growing rapidly
While Microsoft manages several business segments, what…