Microsoft Stock 8-Day Losing Spree: Stock Falls -8.3%

Microsoft (MSFT) stock hit day 8 of a continuous streak of days with losses, with cumulative losses over this period amounting to a -8.3% return. The company has lost about $336 Bil in value over the last 8 days, with its current market capitalization at about $3.7 Tril. The stock remains 18.5% above its value at the end of 2024. This compares with year-to-date returns of 14.4% for the S&P 500.

Microsoft’s recent streak saw investors grappling with escalating AI infrastructure capital outlays weighing on free cash flow, despite robust Q1 results showing 40% Azure AI growth. This, coupled with broader tech market jitters over stretched AI valuations and rising interest rate concerns, prompted a cautious re-evaluation. For quick background: MSFT provides software, services, devices, and solutions, including Office, Microsoft Teams, Windows OEM licensing, and productivity tools for business and personal computing needs.

What is the point? Sustained weakness can be more than noise. It often signals shifting sentiment or deeper concerns. A multi-day losing streak may warn of further downside, or present an opportunity to buy if fundamentals are intact. Our take: There is not much to fear in MSFT stock given its overall Strong operating performance and financial condition. But given its Very High valuation, the stock appears Relatively Expensive. Deep dive with Buy or Sell MSFT.

The question isn’t where MSFT stock goes, but how your portfolio is positioned. See how Trefis High Quality Portfolio and our asset allocation strategy of our Boston-based, wealth management partner prepare you.

Comparing MSFT Stock Returns With The S&P 500

The following table summarizes the return for MSFT stock vs. the S&P 500 index over different periods, including the current streak:
 

Return Period	MSFT	S&P 500
1D	-0.1%	0.1%
8D (Current Streak)	-8.3%	-2.4%
1M (21D)	-4.9%	-0.1%
3M (63D)	-4.6%	5.6%
YTD 2025	18.5%	14.4%
2024	12.9%	23.3%
2023	58.2%	24.2%
2022	-28.0%	-19.4%

 

Gains and Losses Streaks: S&P 500 Constituents

There are currently 72 S&P constituents with 3 days or more of consecutive gains and 23 constituents with 3 days or more of consecutive losses.
 

Consecutive Days	# of Gainers	# of Losers
3D	42	8
4D	22	6
5D	5	7
6D	1	1
7D or more	2	1
Total >=3 D	72	23

 
 
Key Financials for Microsoft (MSFT)

Last 2 Fiscal Years:

Metric	FY2024	FY2025
Revenues	$245.1 Bil	$281.7 Bil
Operating Income	$109.4 Bil	$128.5 Bil
Net Income	$88.1 Bil	$101.8 Bil

Last 2 Fiscal Quarters:

Metric	2025 FQ4	2026 FQ1
Revenues	$76.4 Bil	$77.7 Bil
Operating Income	$34.3 Bil	$38.0 Bil
Net Income	$27.2 Bil	$27.7 Bil

 
The losing streak MSFT stock is currently on doesn’t inspire much confidence among investors. In contrast, Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.