Down 15%, Should You Buy the Dip on Microsoft?

Down 15%, Should You Buy the Dip on Microsoft?

By Stefon Walters, The Motley Fool
Publication Date: 2026-02-19 16:20:00

After finishing 2025 up over 15%, Microsoft (NASDAQ: MSFT) 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.

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Image source: Microsoft.

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…