Microsoft Shares Plunge 20% in June, Worst Month Since 2000
Microsoft is on pace for its steepest monthly drop in 25 years, erasing over $1 trillion in market cap since last year's peak.
Microsoft shares have fallen more than 20% in June alone, putting the Redmond, Washington-based tech giant on track for its worst monthly performance since December 2000 — a stark reminder of how quickly fortunes can reverse even for the world's largest companies. The selloff has wiped out an enormous amount of shareholder wealth in a remarkably short window, raising urgent questions about what is driving the decline.
Just twelve months ago, Microsoft commanded a market capitalization of roughly $4 trillion, a figure that placed it at the very summit of global corporate valuations. That number has since collapsed to approximately $2.65 trillion, a threshold that now puts the company behind chipmaker Nvidia in the ongoing race for the title of world's most valuable public enterprise — a symbolic blow for a company that not long ago seemed untouchable.
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The scale of the retreat is striking in historical context. The last time Microsoft suffered a monthly loss of this magnitude, the dot-com bubble was unwinding and the tech sector broadly was in freefall. That the company finds itself revisiting such territory in 2025, despite years of robust cloud and AI-driven growth, signals that even the strongest balance sheets are not immune to shifting investor sentiment and macroeconomic pressures.
Analysts and market watchers are now parsing whether this represents a temporary repricing of high-flying AI-linked valuations across the sector or something more fundamental to Microsoft's own competitive and financial outlook. The company's premium multiple had long been justified by expectations of sustained growth in its Azure cloud platform and its deep integration of artificial intelligence tools across its product suite — narratives that may now be under greater scrutiny.
For long-term investors, the drop raises pointed questions about valuation floors and whether the broader AI trade is entering a period of consolidation after years of outsized gains. Continue reading at Yahoo.
