Causes of the Downward Trend
The Microsoft stock is currently in a significant downward trend that has been ongoing since February 2025. During this period, the stock has lost about 18.82% in value. Recently, the price fell to a new 52-week low of 321.25 euros, which is attributed to skepticism regarding the upcoming quarterly report and the company’s AI strategy.
Skepticism Before Quarterly Figures
Investors are concerned about the development of the Azure cloud platform and the monetization of AI investments. This uncertainty has led to a wave of selling, particularly ahead of the upcoming quarterly figures.
AI Strategy and Cloud Growth
Following the AI hype in 2023, the growth of cloud services has slowed down, leading to disappointment among investors. Additionally, rising interest rates and economic concerns are straining the environment.
Technical Analysis
The Microsoft stock shows signs of technical stabilization, especially around the $380 mark, which is considered an important support level. A double bottom could form if this support holds.
Implications for the Technology Sector and Market Sentiment
Technology Sector Under Pressure
The downward trend of Microsoft stock reflects the general skepticism towards growth stocks in the technology sector. Other tech stocks are also affected by this development.
Market Sentiment
The performance of Microsoft stock can provide important signals for overall market sentiment. A positive signal from the quarterly report could improve sentiment, while negative news could reinforce the downward trend.
Economic Conditions
The tight monetary policy of the Fed and inflation concerns are also contributing to the tense market sentiment. These factors affect not only Microsoft but the entire technology sector.
Overall, Microsoft stock remains an important indicator of sentiment in the technology sector and could significantly contribute to overall market sentiment through its future development.