Microsoft closes worst quarter on Wall Street since 2008 on AI concerns: 'Redmond is in a pickle'

Microsoft lost almost 25% of its value in Q1, its steepest quarterly decline since 2008. The drop is driven by investor concerns about the return on investment for AI buildouts and weaker-than-expected adoption of Copilot, amplifying negative sentiment and putting pressure on tech-sector multiples.

Analysis

Microsoft lost almost 25% of its value in Q1, its steepest quarterly decline since 2008. The drop is driven by investor concerns about the return on investment for AI buildouts and weaker-than-expected adoption of Copilot, amplifying negative sentiment and putting pressure on tech-sector multiples.