Microsoft Shares Down 5.6% in Four Weeks as Analysts Lift Earnings Estimates
Microsoft shares have slid 5.6% over the past four weeks, driving key technical indicators into oversold territory. Meanwhile, a majority of analysts have raised their earnings estimates over the past month, suggesting growing confidence in the company’s cloud and AI revenue expansion.
1. Microsoft Stock Poised for Technical Rebound
Over the past four weeks, Microsoft shares have declined by 5.6%, pushing several momentum indicators into oversold territory. The relative strength index (RSI) dipped below 30 for the first time since early 2024, signaling that bearish selling pressure may have peaked. During this period, institutional volume rose by 12%, suggesting heavy profit-taking rather than panic selling. Meanwhile, 28 of 36 Wall Street analysts have revised their full-year earnings estimates upward in the past month, lifting consensus EPS forecasts by 5% to $10.45 per share for fiscal 2026. The convergence of exhausted technical momentum and a broad-based lift in analyst projections creates a potential inflection point that could catalyze a trend reversal in Microsoft stock.