Microsoft shares plunge 17% in June amid AI spending concerns
Microsoft's stock took a big hit in June 2026, dropping 17%, its steepest monthly fall since 2000.
The slide wiped out over $570 billion from its market value, mostly because investors are worried about how much Microsoft is spending on AI and what that means for classic products like Word and Excel.
The stock touched its lowest point of the year before rebounding a bit at the end of the month.
Analysts forecast 17% Microsoft revenue growth
A huge $190 billion spending forecast on AI and other tech surprised Wall Street and made some investors nervous about profits, especially with Azure cloud growth slowing down.
Still, analysts see a bright side: they're expecting Microsoft's revenue to grow by 17% this fiscal year (the fastest since 2022) and speed up even more by 2029.
Despite this rocky patch, many believe Microsoft's strong position in AI and cloud will pay off long term.