Microsoft’s Stock Under Pressure Following Earnings Report
Microsoft’s stock (NASDAQ: MSFT) has dropped over 10% since the start of 2026, trading around 25% below its 52-week high of $555.45. The company’s second-quarter earnings report, released last month, revealed revenues of $81.3 billion, a 17% year-over-year increase. However, Azure’s growth rate slowed to 39%, slightly below analysts’ expectations and down from 40% in the previous quarter, raising concerns among investors.
Despite the current downturn, CEO Satya Nadella emphasized growth opportunities in artificial intelligence, stating that Microsoft’s AI business is already larger than some of their major franchises. The stock is currently trading at approximately 26 times trailing earnings, making it comparatively attractive to the average S&P 500 stock, which trades at about 25 times earnings.
