Microsoft's stock experienced a dramatic decline, plummeting approximately 10% on January 28-29, 2026. This downturn resulted in a staggering loss of $357 billion in market value, raising alarms among investors regarding the company's growth trajectory. According to the experts cited in the publication, the situation is becoming critical.
Investor Concerns Over Azure AI Growth
The primary cause of this significant drop is attributed to investor concerns surrounding the growth of Azure AI and the company's high capital expenditures. CEO Satya Nadella revealed that Azure's growth rate was only 39%, falling short of market expectations and prompting worries about the platform's competitive edge in the rapidly evolving AI landscape.
Microsoft's Strategic Shift
In light of these challenges, Microsoft is recalibrating its strategy by prioritizing internal AI research and development over immediate cloud revenue advancements. This shift has sparked apprehension among investors, who are questioning the company's ability to deliver future returns. Despite the long-term potential of AI to revolutionize Microsoft's business model, the current focus on internal development may lead to short-term volatility in stock performance.
In a recent development, AVAX One's shares dropped by 32%, raising concerns among investors, particularly in light of Microsoft's recent stock decline. For more details, see more.
