Microsoft Stock Off to Worst Three-Month Start

Microsoft stock is heading for its worst three-month start to a year on record, now about 32% below the all-time closing high it reached five months ago at $542.07 on Oct. 28, 2025, according to Dow Jones Market Data.

The company told UBS that while it needs to accelerate innovation, it can still succeed as a “fast follower.” (Photo: JeepersMedia Flickr) 

It is also experiencing its worst six-month stretch since 2009, Janet H. Choi reported for Barron’s Daily.

Some investors are concerned about the growth prospects of its two core businesses: cloud computing and software, both of which face increasing competition from artificial intelligence across the tech industry.

A note from UBS Global Research cited feedback from Asian investors regarding Microsoft’s 365 Copilot offering.

The AI-powered productivity tool had about 15 million subscribers at the end of the last quarter, but investors said adoption should have been higher. Analysts added that the narrative around Microsoft 365 Copilot “needs to improve” for the stock to re-rate meaningfully.

Some investors described Copilot’s performance so far as “disappointing.”

Microsoft has lost nearly $1.28 trillion in market value since its October peak, according to Dow Jones Market Data.

The company told UBS that while it needs to accelerate innovation, it can still succeed as a “fast follower.” It also noted that Copilot usage increased during the December quarter.