Microsoft's stock saw its biggest daily decline since 2020 on Thursday after investors were dismayed by its cloud computing business not growing enough.

MSFT stock decreased by 37.6% from a peak of $343.11 on 19 November 2021 to $214.25 on 3 November 2022, compared to a peak-to-trough drop of 25.4% for the S&P 500. Nevertheless, the stock fully bounced back to its pre-crisis peak by 15 June 2023.

Microsoft is shifting focus to fixing Windows 11 performance and reliability after months of buggy updates, boot failures, and growing user frustration.

By Deborah Mary Sophia, Aditya Soni and Stephen Nellis Jan 28 (Reuters) - Microsoft said on Wednesday it had spent a record amount on artificial intelligence in the last quarter and posted slower cloud-computing growth,

Shares of Microsoft plunged 12% and software stocks hit a bear market. The S&P 500 edged back from 7,000 as AI spending fears were rekindled.

Why France just dumped Microsoft Teams and Zoom - and what's replacing them

Microsoft reports revenue of $81.3 billion for the October-December quarter, marking a 17% increase from the previous year.

OpenAI and Microsoft have a reconfigured relationship. The software giant revealed just how much OpenAI is driving its RPO.

The company said on Wednesday that revenue in the most recent quarter was $81.3 billion, but its share price dropped more than 5 percent in after-hours trading.

Microsoft’s new warning was spotted by Windows Latest. “In an updated support document, the company has confirmed that the update is indeed crashing some PCs.” This primarily affects commercial PCs. “Most home users won’t run into the problem.”

Microsoft's stock tumbled more than 12% at the low point of the day to $421 on Thursday, slicing off more than $400 billion in market value.