Microsoft Shares Fall 24% in Worst First-Half Since 2000, P/E Hits 20.2
MSFT•Microsoft shares have slid 24% year-to-date, marking their worst first-half performance since 2000, and now trade at a forward P/E of 20.2, the lowest since 2016. The company faces a securities class action over alleged Copilot misstatements, even as 95% of analysts maintain Buy or Hold ratings.
1. Worst First-Half Performance Since 2000
Microsoft shares have dropped 24% year-to-date through June 24, marking their steepest first-half decline since 2000. This downturn reverses years of strong gains driven by AI partnerships and cloud expansion.
2. Valuation and Sentiment Shift
The stock now trades at a forward P/E of 20.2, its lowest multiple since late 2016. Retail sentiment has flipped to bearish on social platforms as semiconductor peers outperform, with Intel, Micron and Western Digital rallying nearly fourfold this year.
3. Analyst Ratings and Price Targets
Out of 56 analysts covering Microsoft, 53 maintain Buy or higher ratings and three rate it Hold. Their average price target of $561.39 implies roughly 53% upside from current levels.
4. Securities Class Action Lawsuit
Investors have filed a class action claiming Microsoft made false and misleading statements about its Copilot AI product’s performance and capital requirements. Eligible investors who purchased stock between May 1, 2025 and January 28, 2026 must file by August 11, 2026.
