Microsoft stock 2026: Why is the price currently falling?

Microsoft stock review: Reasons for the price decline, current figures, price target and valuation.
Reading time: 4 Minutes
Last updated: April 1, 2026
Microsoft stock - price crash - why is the stock falling?

Microsoft stock: Why is it currently in such high focus?

Microsoft stock is among the largest and best-known technology stocks worldwide. The company earns its money primarily through software, cloud services, and increasingly through artificial intelligence.

A key area is the Azure cloud platform. Companies use it to store data and run applications. This includes products like Microsoft 365, Windows, and LinkedIn.

The stock is currently under intense scrutiny because its price has fallen significantly in recent months. Many investors are therefore wondering whether this is just a normal correction or whether something fundamental has changed.

One important point: Microsoft is currently investing heavily in AI and data centers. These investments are important in the long term, but are putting a strain on profits in the short term. This is precisely what is causing uncertainty in the market.

View Microsoft rating

What events were important in recent weeks?

In recent weeks, two main topics have been in focus.

First: the high investments in artificial intelligence. Microsoft is expanding data centers worldwide to meet the increasing demand for AI applications. This costs a lot of money in the short term and puts pressure on margins.

Secondly, there are developments in the cloud business. Azure continues to grow strongly, but not fast enough to meet the high expectations of many investors. Additionally, there are indications that demand is sometimes higher than available capacity. This is slowing growth in the short term.

For investors, this means: Business is going well, but expectations were very high. This gap is currently putting pressure on the share price.

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What is the current share price?

Microsoft shares are currently trading at around 320.10 euros (as of March 31, 2026), which is about 31 percent below the year's highest price.

The share price has fallen significantly in recent months. The main reasons for this are:

  • High AI investments put a strain on profits in the short term.
  • Expectations for cloud growth were very high.
  • Uncertainty about the monetization of AI products
  • Weak market environment for technology stocks

Important for beginners: A falling share price does not automatically mean that a company has become worse. Often, it simply means that investors' expectations are changing.

At the same time, it's important to remember that downturns can last longer than many people think. Therefore, it's crucial to look not only at the share price but also at the development of the business.

What aspects of the figures are of particular interest to investors?

When you look at Microsoft stock, four points are particularly important:

  • Revenue and profit: Microsoft continues to grow strongly, especially in its cloud business. AI is also driving demand.
  • Outlook: The company expects continued growth, but also increased investments. This could put pressure on profits in the short term.
  • Evaluation: The current P/E ratio is around 21.66. For a company like Microsoft, that's moderate.
  • Market reaction: Despite good figures, the stock has fallen. This shows how important expectations are on the stock market.

What could become important in the coming weeks?

In the coming weeks, investors will be focusing primarily on the next quarterly report.

Important questions are:

  • How fast will Azure continue to grow?
  • Will the high levels of AI investment continue?
  • How are the margins developing?

The next quarterly report is expected on April 28th.

Important: Forecasts are not guarantees. They only show what is currently expected. If the general conditions change, the outlook can also change quickly.

What do the analysts say?

Many investors base their decisions on analysts' price targets. However, these are not fixed targets, but rather estimates.

According to Marketscreener The average price target is around 590 US dollars. That corresponds to approximately 510 euros.

This puts the price target significantly above the current price. This shows that many analysts still see long-term potential.

Microsoft stock dividend: Does this play a major role for investors?

Microsoft pays a dividend, but it is relatively low.

The dividend yield is currently below 1 percent. Therefore, Microsoft is not a typical dividend stock.

For investors, growth is therefore usually the main focus, not the dividend payout.

What questions should you ask yourself as a beginner?

Instead of making a quick decision, you should ask yourself these questions:

  • Do you understand Microsoft's business model?
  • Do you believe in long-term growth through cloud computing and AI?
  • Can you withstand even larger price declines?
  • Does this stock fit your strategy?

How does TransparentShare rate Microsoft stock?

Microsoft stock is listed in the TransparentShare app as of March 31, 2026. Buy recommendation classified.

This classification is based on a data-driven analysis of various key figures.

View the full Microsoft review now

Microsoft Stock Outlook: Conclusion

Microsoft stock is currently a good example of how strongly expectations influence the price.

The company continues to grow steadily and is benefiting greatly from the AI trend. At the same time, high investments and high expectations are creating uncertainty.

For beginners: Don't just look at the price. Pay attention to the business model, the numbers, and your own strategy.

The TransparentShare app helps you to objectively assess the stock and make better decisions.

Which stocks are currently particularly interesting?

TransparentShare automatically evaluates more than 1200 stocks daily using 12 key figures. Currently, 116 of these stocks are rated as a buy. (As of March 31, 2026).

Each week we select three stocks that are currently particularly attractively valued. This gives you a quick and easy entry point.

Start now for free and get instant access to all reviews in the app.

Discover all our buying recommendations now

Where can I find official information about Microsoft?

You can find official information directly on Microsoft's Investor Relations page:

Microsoft Investor Relations

There you will find quarterly figures, presentations and all important company news.

Picture of Andreas Hauser

Andreas Hauser

Andreas is the founder and managing director of TranspaShare GmbH. He has been passionate about the stock market for over 30 years – and has been at home in the technology industry for just as long. With TransparentShare, he combines stock market expertise and IT to provide investors in the emotionally charged world of stocks with objective analyses and greater clarity for their decisions.

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