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With a market cap of $2.9 trillion, Microsoft Corporation (MSFT) is a global technology company that develops and supports a wide range of software, services, devices, and cloud-based solutions for consumers and businesses worldwide. The company distributes its products through OEMs, partners, resellers, and direct online and retail channels.
Companies worth more than $200 billion are generally considered "mega-cap" stocks, and Microsoft fits this criterion perfectly. Its operations are organized into three main segments: Productivity and Business Processes; Intelligent Cloud; and More Personal Computing, covering products such as Microsoft 365, Azure, LinkedIn, Dynamics, Windows, Xbox, and cloud-based AI and security solutions.
Shares of the Redmond, Washington-based company have slipped 30.1% from its 52-week high of $555.45. MSFT stock has decreased 17.8% over the past three months, lagging behind the broader Dow Jones Industrials Average's ($DOWI) 7% rise over the same time frame.
Longer term, MSFT stock is down 19.7% on a YTD basis, underperforming DOWI's 3% gain. Moreover, shares of Microsoft have declined 4.9% over the past 52 weeks, compared to DOWI's 14% return over the same time frame.
The stock has shown a bearish trend, trading below its 50-day moving average since November 2025.
Despite reporting better-than-expected Q2 2026 adjusted EPS of $4.14 and revenue of $81.27 billion on Jan. 28, Microsoft shares tumbled nearly 10% the next day as investors fixated on Azure growth slowing to 39% year-over-year, down from 40% last quarter. The reaction was compounded by weakness in the More Personal Computing segment, which posted $14.25 billion in revenue, missing the estimate and signaling softness in Windows, Surface, and gaming.
In comparison, rival Oracle Corporation (ORCL) has lagged behind MSFT stock. ORCL stock has dipped 27.1% on a YTD basis and 15.3% over the past 52 weeks.
Despite the stock's weak performance relative to the Dow, analysts are strongly optimistic about its prospects. MSFT stock has a consensus “Strong Buy” rating overall from the 50 analysts covering the stock, and the mean price target of $595.60 represents a premium of 53.3% to current levels.
