Microsoft shares fell 23% in the first quarter, marking their steepest decline
since the 2008 financial crisis, amid concerns over AI returns and weak adoption
of Copilot. Analyst Ben Reitzes said “Redmond is in a pickle,” citing pressure
on cloud capacity. Despite strong Azure growth, valuation has dropped to 2022
lows. Gil Luria said “the dislocation in the fundamental performance of
Microsoft and the stock performance… is the biggest it’s been in decades.”
