Microsoft has been one of the worst-performing big tech stocks in 2025, down by 23% so far this year and around 31% from its peak. However, despite this downturn, long-term investors should view it as a buying opportunity. The company’s business model has changed significantly over the past decade, with a focus on subscription-based products providing steady cash flows. This shift makes Microsoft more resilient than its predecessor.
In the past, Microsoft’s share price fell by 30% or more from an all-time high once in the last decade. That happened during late 2022 to early 2023, when investors feared a deep recession. However, the economy recovered, and Microsoft’s stock rose to new heights until the recent crash.
The main reason for Microsoft’s current decline is concerns over AI spending. But this fear isn’t justified, as Microsoft earns significant revenue from its cloud infrastructure supporting AI models. Additionally, the company’s shares are trading at their cheapest price in a decade from a price-to-earnings standpoint.
Given these factors, it’s an excellent time to buy Microsoft stock. The author predicts that the stock will bottom out soon and return to its all-time high by 2026, assuming no significant changes in the business model.
Source: https://www.fool.com/investing/2026/04/07/microsoft-stock-is-down-30-from-its-peak-history-s