Microsoft Shares Plunge 30%, Worst Quarter Since 2008
Microsoft shares plunged about 30% from their October 2025 peak and are down 24% year-to-date, marking their worst quarter since 2008 and worst six-month slide since 2009. Analysts’ target is $591.14 with high estimates up to $730, citing 17% fiscal Q2 revenue growth and AI monetization momentum from Copilot adoption.
1. Share Performance Slide
Microsoft’s stock has fallen nearly 30% from its October 2025 peak and is down 24% year-to-date, representing its steepest six-month decline since 2009. The drop reflects broader tech sector weakness and concerns over heavy AI-related spending.
2. Worst Quarter Since 2008
The company is on track for its worst quarterly return since 2008, when shares plunged 27% in the global financial crisis. This performance underscores elevated investor caution around big-cap tech names.
3. Analyst Price Targets
Among 52 analysts covering Microsoft, the average target stands at $591.14, with the highest estimate at $730 and the lowest at $392, implying roughly 65% upside from current levels. Major firms like Bank of America and Citi maintain Buy ratings with targets of $500 and $635 respectively.
4. Revenue Growth and AI Strategy
Microsoft reported 17% revenue growth in its fiscal Q2, driven by cloud services and enterprise software. Continued momentum in AI monetization and adoption of Copilot support the bullish outlook despite recent stock weakness.