By Dave Kovaleski
Publication Date: 2026-03-07 20:34:00
Since last October, when Microsoft (MSFT 0.43%) surged to an all-time high of $540 per share, the stock has been in free fall. As of March 3, shares are down some 24% from those October highs to $410 per share.
The drop is in part due to investors rotating out of overvalued tech stocks, but there are also Microsoft-specific concerns that have caused the price to tank. Most of the decline came after Microsoft’s fiscal second-quarter earnings report for the period ended Dec. 31. Shares plummeted more than 17% to below $400 per share on several concerns.
Image source: Getty Images.
Part of it was high capital expenditures (capex) and artificial intelligence (AI) spending for 2026. Investors are concerned that while Microsoft’s Azure AI cloud computing revenue has been strong, it grew at a slightly slower pace last quarter. And the expectation for next quarter is even a little bit slower. We’re talking a 40% growth pace falling to 37% to 38% growth, so it’s not like a massive…
