US EditionMicrosoft lost $357 billion in market cap as stock plunged most since 2020
Microsoft’s 10% stock drop erased $357 billion amid concerns over cloud growth and AI investment timing despite beating profit and revenue estimates.
- On Thursday, Microsoft shares plunged about 10%, its steepest one‑day drop since March 2020, wiping $357 billion from its market value after the earnings release.
- Investors focused on Microsoft’s cloud growth and spending, noting capital expenditures of $37.5 billion and softer‑than‑expected margin guidance that drew scrutiny.
- Microsoft reported $81.3 billion in revenue and $4.14 in non‑GAAP EPS, with Azure growing 39% and non‑GAAP margins at 80.5%, while executives discussed GPU/data‑center allocation on the earnings call Wednesday.
- The selloff pulled major tech benchmarks lower as Microsoft’s plunge helped drag the Nasdaq Composite index down about 0.7%, while the iShares Expanded Tech‑Software ETF and software sector funds sank sharply.
- This earnings season, investors are reassessing AI’s impact on software as market participants say AI poses a long‑term threat, sparking a broader selloff Thursday.
127 Articles
127 Articles
Microsoft’s ‘black Thursday’ cost one of Wall Street’s ‘magnificent 7’ $357 billion in market value, the second worst destruction of capital in the history of New York’s stock exchanges. The software giant’s titles closed with a 10 percent drop, its biggest collapse since March 2020, following the publication of its quarterly results that showed record spending on Artificial Intelligence, but a slowdown in its cloud business. The only fall worse…
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New York, USA.- Microsoft's shares fell by about 10% this Thursday after a performance report that disappointed some investors, being the company's worst stock market session since March 2020, said El Norte. This drop reduced the market capitalization of the technology company by 357 billion dollars, placing it at 3.22 billion at the end of the day. Dragged by Microsoft, the overall market index (S&P 500) fell by 0.1%, while the Nasdaq Composite…
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