By Mohit Oberoi
Publication Date: 2026-06-02 13:45:00
Microsoft Corporation logo on sign-by Jean-Luc Ichard via iStock
Microsoft stock (MSFT) is up a cool 30% from the 2026 lows that it hit in late March. The rally has helped it bridge its 2026 losses to 7% even though it is still the worst-performing Magnificent 7 so far. Meta Platforms (META) and Tesla (TSLA) are the other two Mag 7 stocks in the red this year and underperforming the S&P 500 Index ($SPX).
Notably, Microsoft’s underperformance is not a 2026 thing; it underperformed the S&P 500 Index in 2024, barely outpaced it in 2025, and was the worst-performing Mag 7 stock in 2024. With Microsoft stock showing some signs of recovery, it would be prudent to examine whether there is still heat left in the rally or whether investors would be better off selling the stock instead.
Why Has Microsoft Stock Rebounded?
To begin with, let’s analyze the key factors behind Microsoft’s recovery. First, there has been a broad-based market rally that supported…

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