Microsoft Drops Most Since 2020 Amid Slowing Cloud Growth

Microsoft to Outperform This Year, D.A. Davidson's Luria Says

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By Matt Day and Brody Ford

January 28, 2026 at 9:19 PM UTC

Updated on

January 29, 2026 at 2:45 PM UTC

Microsoft Corp. plunged the most in almost six years after reporting record spending and slowing cloud sales growth, fueling investor concerns that it could take longer than expected for the company’s AI investments to pay off.

The shares sank by as much as 11% to $429.24, for the biggest intraday slide since March 2020.