Microsoft Shares Down 17% in June, Worst Monthly Drop Since 2000
MSFT•Microsoft shares have plunged 17% in June, on track for the stock’s steepest monthly decline since December 2000 and erasing $570 billion in market value. Despite the rout, Deutsche Bank reiterated a Buy rating with a $550 price target after Microsoft forecast modest Azure growth and raised capex guidance to $190 billion.
1. June Share Performance
Microsoft shares fell approximately 17% in June, marking the worst monthly decline since December 2000, when the stock dropped 24.4%. The sell-off erased about $570 billion in market capitalization as investors rotated out of mega-cap tech names.
2. Sector and AI Spending Context
While the broader technology sector ETF is up 27% year-to-date, mega-cap leaders have underperformed; the Magnificent Seven ETF shed 10.7% over the past month. Market concerns center on Microsoft’s heavy AI investment potentially rendering traditional software offerings less relevant and pressuring margins.
3. Outlook and Analyst View
In its fiscal third quarter, Microsoft forecast modest Azure growth and raised year-end capex to $190 billion to support its AI expansion. Deutsche Bank maintained its Buy rating and $550 price target, citing confidence in Microsoft’s ability to sustain operating margins and deliver value-creative growth.
