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With a loss of over 23% as of April 7 closing prices, Microsoft is the worst-performing Magnificent 7 stock this year. The stock is also underperforming its average S&P 500 Index ($SPX) peer this year, something it also did in the previous two years. Notably, while Microsoft was seen as a defensive play given its relatively stable business compared to other Big Tech companies, it failed to live up to that perception this year and has underperformed amid the war in Iran.