Microsoft Corporation ($MSFT) Stock Forecast: Down 11.8% Today

What is Microsoft Corporation?

Microsoft (MSFT:NASDAQ) is a technology giant recognized for its software products and cloud services. The stock saw a notable decrease in the market today.

Why is Microsoft Corporation going down?

MSFT stock is down 11.8% on Jan 29, 2026 20:02

• Microsoft stock dropped by 12% today, making it the seventh-largest decline in company history.
• Investor worries surrounding AI capacity limitations, extensive investments in AI infrastructure, and reduced profit margins resulting from commitments to OpenAI played a part in the selling pressure.
• Despite a solid earnings performance, the company's reliance on OpenAI, a significant contributor to commercial obligations, heightened concentration risk and influenced the market's negative response.
• The bearish movement in Microsoft's stock had a ripple effect on other enterprise software stocks, reflecting broader sentiment in the market towards technology companies grappling with similar challenges in the AI sector.

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MSFT Technical Analysis

MSFT News

United Rentals Reports Disappointing Q4 Earnings, Shares Drop

United Rentals (URI) reported fourth-quarter sales and earnings per share below Wall Street expectations, causing a 14% stock drop. Despite this, the company projects 5-6% growth in sales and free cash flow by 2026, driven by its strong specialty unit which saw a 9% sales increase in Q4. Management has also focused on shareholder returns through share reductions and increased dividends.

https://intellectia.ai/news/stock/united-rentals-reports-disappointing-q4-earnings-shares-drop

Jim Cramer Says He Doesn't "Want to Chase" Storage Memory Plays Like Western Digital

Jim Cramer expressed reluctance to "chase" storage memory stocks like Western Digital, despite a significant memory shortage driven by data center build-outs. He noted that major players in the memory market, including Micron, Western Digital, Seagate, and SanDisk, have seen substantial gains. Night Watch Investment Management, while acknowledging Western Digital's potential, has been scaling down its position due to the historical volatility of memory cycles and prefers AI stocks for greater upside.

https://finviz.com/news/292230/jim-cramer-says-he-doesnt-want-to-chase-storage-memory-plays-like-western-digital

Microsoft leads software stocks lower; suffers 7th largest drop in company history (MSFT:NASDAQ)

Microsoft experienced its seventh-largest single-day stock drop, plunging 12% due to investor concerns about AI capacity restraints, significant performance obligations to cash-burning OpenAI, and declining profit margins from heavy AI infrastructure investment. This sell-off occurred despite a strong earnings report and affected other enterprise software stocks. The substantial reliance on OpenAI, which accounts for 45% of Microsoft's commercial performance obligations, is increasing concentration risk for the company.

https://seekingalpha.com/news/4544347-microsoft-leads-software-stocks-lower-suffers-7th-largest-drop-in-company-history

G2 bold move to reshape software discovery with major acquisition from Gartner

G2, a Chicago-based software insights platform, has announced its acquisition of Capterra, Software Advice, and GetApp from Gartner. This strategic move consolidates four major B2B review sites under one entity, aiming to streamline software discovery for buyers and enhance demand generation for vendors through unified, AI-driven experiences. The combined platform will leverage millions of customer reviews and a vast audience to become a central hub for B2B software purchasing, with the transaction expected to close in Q1 2026.

https://thenextweb.com/news/g2-bold-move-to-reshape-software-discovery-with-major-acquisition-from-gartner

Lam Research Corp (NASDAQ:LRCX) Exceeds Market Expectations

Lam Research Corp (NASDAQ:LRCX) reported strong fiscal Q2 2026 results, surpassing market expectations for both earnings and revenue. The company achieved record revenues in 2025, with significant growth in its WFE and CSPG segments, driven by AI transformation. Looking ahead, Lam Research anticipates continued growth for Q1 2026, with revenue projected between $5.70 billion, plus or minus $300 million, exceeding consensus estimates.

https://fxdailyreport.com/lam-research-corp-nasdaqlrcx-exceeds-market-expectations/

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Microsoft Corporation Price History

30.09.2025 - MSFT Stock was down 2.9%

• Analysts have expressed confidence in Microsoft's potential, foreseeing a path towards a $5 trillion market cap driven by AI and cloud service innovations. Despite robust financial results and a surge in commercial bookings, MSFT shares encountered downward pressure.
• Strong demand for Microsoft's cloud and AI solutions led to exceptional first-quarter fiscal performance, marked by record-high commercial bookings and backlog. However, MSFT stock struggled amidst these positive outcomes.
• Microsoft's CFO highlighted challenges in Azure's cloud infrastructure due to the rapid growth of the AI sector, which could potentially hinder revenue growth for the latest quarter. This capacity constraint might have contributed to the decline in MSFT stock.
• Rumors of OpenAI's plans for an unprecedented IPO worth up to $1 trillion may have diverted market attention from Microsoft, impacting the stock performance negatively.

02.09.2025 - MSFT Stock was down 0.5%

• The bearish movement in MSFT stock today could be attributed to the announcement of a 50% price increase for its Xbox Game Pass Ultimate subscription, which might lead to concerns about potential customer backlash or reduced subscription numbers.
• Despite the positive news about MSFT's microfluidics technology advancement outpacing AI chip rivals, the market may have focused more on the potential impact of the subscription price hike on the company's revenue and customer base.
• The bullish stance taken by investors in the options market might not have been enough to offset the negative sentiment caused by the subscription price increase, leading to the overall bearish movement in the stock.
• Additionally, the ongoing competition analysis and Microsoft's focus on developing its own AI data center chips could be seen as long-term positive factors, but they may not have been enough to counterbalance the immediate concerns raised by the subscription price hike.

02.00.2026 - MSFT Stock was down 1.4%

• Microsoft (MSFT) exhibited a downward trend in the market today, possibly influenced by analysts showing a preference for its competitor, Google, in the AI competition.
• Analysts are leaning towards Microsoft rather than Google due to Microsoft's strong presence in AI cloud services with Azure, which may have caused a shift in investor sentiment away from Microsoft.
• The market reaction could be linked to concerns about potential disruption in Google's core search business by AI technology, leading to a more pessimistic view on Microsoft's AI ventures.
• The change in analyst preferences and perceived risks in the AI sector might have contributed to the decline in Microsoft's stock value today.

19.08.2025 - MSFT Stock was up 2.0%

• Microsoft's debt-free balance sheet and substantial cash reserve allow for strategic flexibility, enabling bold investments in automation growth.
• When comparing cloud and AI giants Oracle and Microsoft, the latter stands out as the superior choice due to its diversified AI revenue streams and established execution capabilities.
• The ongoing expansion of Microsoft's datacenter infrastructure, highlighted by a recent $7B investment in Wisconsin, is expected to drive significant growth for the stock. This investment is anticipated to boost Azure's growth and position the company for gains driven by AI.
• Backed by strong growth prospects and a history of innovation, Microsoft remains an appealing option for growth investors looking for exceptional returns in the technology sector.

23.00.2026 - MSFT Stock was up 4.2%

• Microsoft (MSFT) stock defied the recent bearish trend and saw a strong bullish movement today.
• The positive market movement could be attributed to investors reassessing the stock's valuation after the recent pullback, seeing it as a potential long-term buying opportunity.
• Despite concerns about an "AI bubble" and challenges in the AI sector, Microsoft's strong cash flow and diversified business model likely contributed to the renewed investor confidence.
• The upcoming earnings report on January 28th will be crucial, with investors closely watching key factors such as Azure and AI growth, revenue guidance, and capital expenditures to gauge the company's performance and future prospects.

29.00.2026 - MSFT Stock was down 9.9%

• The downward movement in MSFT could be linked to profit-taking by investors following a period of significant gains.
• The unveiling of Clarivate's new AI academic assistant may have prompted investor interest in companies in the AI and technology sector, diverting attention from traditional tech giants like Microsoft.
• The positive quarterly earnings and dividend increase by Wells Fargo & Company and Williams Companies, Inc. may have captured investor attention away from MSFT, resulting in a sell-off.
• The decrease in stake by Kornitzer Capital Management Inc. in HubSpot, Inc. might signify a broader pattern of tech investors adjusting their portfolios, impacting established tech companies such as Microsoft.

29.00.2026 - MSFT Stock was down 11.8%

• Microsoft stock dropped by 12% today, making it the seventh-largest decline in company history.
• Investor worries surrounding AI capacity limitations, extensive investments in AI infrastructure, and reduced profit margins resulting from commitments to OpenAI played a part in the selling pressure.
• Despite a solid earnings performance, the company's reliance on OpenAI, a significant contributor to commercial obligations, heightened concentration risk and influenced the market's negative response.
• The bearish movement in Microsoft's stock had a ripple effect on other enterprise software stocks, reflecting broader sentiment in the market towards technology companies grappling with similar challenges in the AI sector.

29.00.2026 - MSFT Stock was down 11.3%

• Microsoft's stock experienced a significant bearish movement, plunging over 10% after its earnings report spooked investors, contributing to a tech-driven selloff in the market.
• Concerns about Microsoft's capital spending and slowing cloud sales, alongside Tesla's strategic shift and first-ever annual revenue decline, added to the negative sentiment in the market.
• The potential investment of Nvidia, Microsoft, and Amazon in OpenAI amounting to $60 billion could have also influenced market dynamics, showcasing the tech industry's focus on AI development and innovation.
• Overall, the combination of Microsoft's disappointing earnings, broader tech sector concerns, and potential large-scale investments in AI may have fueled the bearish market movement for Microsoft.

29.00.2026 - MSFT Stock was down 11.2%

• Speculations about Nvidia, Microsoft, and Amazon potentially investing up to $60 billion in OpenAI might have influenced a negative investor sentiment towards Microsoft. This perceived focus on AI development rather than core business operations could have contributed to the bearish movement.
• The appointment of Jantzen Bridges as Global President of Credera at Omnicom Group Inc., with a focus on AI-enabled transformation programs, could have sparked concerns about heightened competition in the AI domain. Such concerns may have impacted Microsoft's stock performance adversely.
• Applied Materials achieving an all-time high and Extreme Networks reporting robust earnings could have shifted investor attention away from Microsoft. This diversion could have led to a bearish trend as market participants explored opportunities in other flourishing tech companies.
• Salesforce experiencing a 52-week low due to competitive pressures and market volatility may have played a role in the broader decline in the tech sector, affecting Microsoft. Investors might be reassessing their positions in response to evolving market dynamics.

29.00.2026 - MSFT Stock was down 11.9%

• The bearish movement in MSFT's stock could be attributed to the overall risk-off sentiment in the software sector following disappointing earnings reports from competitors, impacting Microsoft's stock.
• Concerns about cloud demand and AI return on investment timelines may have contributed to the negative market sentiment towards Microsoft, influencing its stock performance.
• While Microsoft has a diversified business portfolio, including cloud services and hardware, the broader market trend influenced by competitors' earnings reports likely played a significant role in the bearish movement of MSFT today.

29.00.2026 - MSFT Stock was down 11.4%

• Microsoft exhibited bearish movement today following its latest earnings performance, resulting in a sharp stock decline exceeding 10%.
• Factors contributing to this downturn include apprehensions regarding Microsoft's capital spending, slowing cloud sales, and the broader tech-oriented market decline.
• The disclosure of potential investments in OpenAI by major tech players such as Nvidia, Amazon, and Microsoft underscores the industry's continued focus on AI technologies, though some analysts caution against a potential AI bubble.
• The unveiling of an AI-powered Intelligence Hub by Franklin Templeton in partnership with Microsoft Azure demonstrates the growing incorporation of advanced AI solutions in financial services, with a goal to improve client interactions and operational effectiveness.

31.06.2025 - MSFT Stock was up 5.8%

• Microsoft (MSFT) experienced a strong bullish movement.
• The positive market sentiment could be attributed to the company's impressive fourth-quarter earnings report, where they beat expectations and highlighted the growth of their cloud services, particularly Azure.
• CEO Satya Nadella's comments on the importance of cloud and AI in driving the company's success likely resonated well with investors, showcasing Microsoft's strategic focus on cutting-edge technologies.
• The anticipation surrounding Microsoft's earnings release and positive revisions by analysts might have also contributed to the bullish movement, reflecting confidence in the company's financial performance and future prospects.