Microsoft stock plunges 3.5%: here are 3 big reasons why

Microsoft stock MSFT fell 3.5% on Thursday, extending a post-earnings slide that began late last week and gathering fresh momentum as investors turned sharply more cautious.

The move did not stem from a new company announcement, but from a market reassessment already underway.

Slower cloud growth flagged a week earlier, mounting AI-related spending, and a renewed sector-wide sell-off combined to push one of Wall Street’s most heavily owned stocks sharply lower.

The decline underscores a growing theme in markets, even companies seen as long-term AI winners are being judged more harshly on near-term cash flow and execution.

Cloud momentum concerns are lingering

The drag on Microsoft stock is not new, but it remains unresolved.

Microsoft’s quarterly results showed continued strength in its cloud business, but with growth in Azure slowing compared with earlier periods.

While Azure still expanded at a healthy pace, investors had been positioned for a stronger acceleration.

For a company…