Microsoft (MSFT) Stock Plunges 32% as AI Copilot Struggles Disappoint Wall Street

Microsoft's stock has plummeted 32% from its October 2025 peak due to disappointing uptake of its AI Copilot tool. The company's shares are trading at their lowest price-to-earnings multiple in ten years, despite delivering 17% year-over-year revenue expansion in its latest quarter.
Microsoft's stock has fallen 32% from its October 2025 peak. The decline is due to disappointing uptake of its AI Copilot tool, with only 15 million seat subscriptions. UBS analysts slashed their price target from $600 to $510. Microsoft's commercial M365 revenue growth remains flat. The company's cloud services revenue surged 39% year-over-year. Microsoft is jointly developing a solution named Copilot Coworker with Anthropic.
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