By Bram Berkowitz
Publication Date: 2026-04-18 21:30:00
One of the big disappointments in the stock market lately has been Microsoft (MSFT +0.60%), which recently closed out its worst quarter since 2008. The stock is down over 17% in the past six months, a big move for one of the world’s largest companies.
Part of the sell-off can be attributed to the 2026 software rout, with investors concerned that artificial intelligence (AI) will easily replicate similar products and solutions, eroding margins and, in turn, pricing power.
Despite the negative sentiment of late, Microsoft could be one of the largest beneficiaries of AI. Unfortunately, Microsoft’s generative AI assistant Copilot has so far disappointed. Recently, reports have circulated that Microsoft CEO Satya Nadella has launched an overhaul of Copilot dubbed “Code Red.” Should investors buy the stock?
Image source: Getty Images.
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