Why did Microsoft fall today?

A broad tech selloff hit software and chip names as investors weighed AI software risk and margins. Traders trimmed megacap exposure ahead of results, adding pressure to indexes. Microsoft tracked the group move as markets reassessed spending, pricing, and the pace of AI adoption in enterprise workflows.

Is Microsoft stock today expensive after the drop?

The shares trade near 25 to 26 times trailing earnings, which is above long-term market averages. That multiple can hold if Azure and AI revenue expand and margins stay firm. If growth slows, valuation could compress. Align entries with your time horizon and tolerance for volatility.

What should UK investors watch next for Microsoft?

Watch the 28 April 2026 earnings for Azure growth, Copilot usage, and AI monetisation. Look for cloud bookings, capex plans, and margin guidance. Also note currency impacts on unhedged holdings. Price action around recent lows and reaction to guidance will shape the near-term setup.

How can UK investors manage currency risk on US tech holdings?

Consider GBP-hedged ETFs or funds, or offset USD exposure elsewhere in your portfolio. If buying individual shares, accept that sterling moves can affect returns. Keep position sizing disciplined, and review whether a natural hedge exists through income or expenses tied to USD.

Global Market Insights

MSFT Stock Today: AI Jitters Trigger Tech Selloff – February 04

ByHuzaifa Zahoor February 4, 2026February 4, 2026

Microsoft stock today slipped as AI concerns weighed on software leaders and dragged major US indices. Shares of MSFT fell almost 3% as traders questioned how AI may pressure traditional licensing and margins. The move echoed broader weakness across cloud and chip names and put focus on Big Tech earnings due this week. For UK investors, currency swings and US valuation risk matter as much as headlines. Below, we cover the drivers, key levels, and what to watch next.