Down 15%, Should You Buy the Dip on Microsoft? | The Motley Fool

After finishing 2025 up over 15%, Microsoft (MSFT +0.40%) has been off to a rough start in 2026. Through Feb. 16, its stock is down 15% year to date, including a 10% single-day drop on Jan. 28 after its latest earnings report.

There are two ways to look at Microsoft’s struggles in early 2026. The first one is through a pessimistic lens and wonder if this is a sign of distress. The second is a more positive view, where you now see a Microsoft stock that’s trading at a “discount.” For most investors, the latter is the better approach.

Why has Microsoft’s stock struggled this year?

When Microsoft reported its latest earnings, it beat analysts’ revenue and earnings per share estimates. However, the “issue” revolves around how much the company intends to spend on artificial intelligence (AI) and data center infrastructure without any short-term return on investment.

This spending will inevitably…