Why did Microsoft stock drop over 10% today?

Results showed slower Azure cloud growth alongside heavier AI capital spending. That raised near-term margin concerns and pushed investors to question the timing of returns from AI infrastructure. The outcome was a broad multiple compression across megacap tech, with Microsoft stock leading declines as risk appetite cooled.

Is Microsoft stock still attractive after the sell-off?

Valuation has eased to about 26.7x TTM earnings. Profitability remains strong with a 39% net margin and 33.6% ROE. The long-term thesis needs clearer monetisation from Copilot and Azure AI. If management shows capex moderation and stable growth, the risk-reward can improve for patient investors.

How can Australians gain exposure to Microsoft?

Invest directly in USD via a broker or use US-focused ETFs listed on the ASX. Many offer hedged and unhedged options. Direct shares give precise sizing; ETFs provide diversification. Consider fees, currency policy, and how much weight the fund holds in Microsoft stock before choosing an approach.

What technical levels matter this week?

Watch the Bollinger lower band near US$471 as first support and the upper band around US$492 as resistance. The 200-day average sits near US$485.5 and acts as a pivot. RSI around 45 signals neutral momentum. A sustained close above the upper band would improve the short-term tone.

Global Market Insights

MSFT Stock Today: January 31 $357B Rout on AI Capex, Azure Growth Jitters

ByDanny Kontos January 30, 2026January 30, 2026

Microsoft stock fell more than 10% today, erasing about US$357 billion in market value after results signalled slower Azure cloud growth and heavier AI capital spending. The slide hit Big Tech broadly as MSFT logged its sharpest drop since 2020. Shares last traded at US$481.63, near the 50-day average of US$479.20 and below the 200-day at US$485.50. For Australian investors, the key is whether AI spend converts to revenue and margin support through Copilot and Azure over 2026. We outline valuation, cash flows, trading levels, and AUD-specific portfolio steps.