By Daniel Sparks
Publication Date: 2026-02-06 02:46:00
After a rough start to 2026, is the software giant’s stock attractive as it invests heavily in AI?
It’s been a brutal start to 2026 for Microsoft (MSFT 4.95%) investors. In just over a month, the stock is down about 18% year to date as of this writing. Even worse, the stock is down about 28% from a 52-week high of $555.45. The tech stock’s decline comes as many software stocks are taking a beating as investors reassess their valuations and the risks in an era of AI (artificial intelligence).
But it’s not like the underlying business is struggling. Not only did the tech company just report another strong quarter of double-digit top-line growth, but the software giant’s operating income rose by a strong double-digit rate even as the company invests heavily in growth opportunities in cloud computing and AI.
So, with the underlying business doing extremely well even as its stock is getting pummeled, is this a buying opportunity for investors?
Image source: Getty Images.
