Stock Market Today, June 25: Microsoft Falls as AI Spending Concerns Pressure Cloud Margin Outlook
Microsoft (NASDAQ:MSFT), an enterprise software and cloud services provider, closed at $352.83, down 3.45%. Stifel cut its price target to $400 from $415 and kept a Hold rating, while investors are watching Azure growth and AI spending.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) slipped 0.01% to 7,357, while the Nasdaq Composite (NASDAQINDEX:^IXIC) fell 0.46% to 25,359. Among application software and cloud infrastructure rivals, Oracle (NYSE:ORCL) closed at $152.46, down 3.10%, and Alphabet (NASDAQ:GOOGL) finished at $342.19, down 0.82%, showing that large-cap tech weakness extended beyond Microsoft.
What this means for investors
Microsoft shares declined after Stifel reduced its price target and expressed concerns that margin expectations may be unrealistic as the company increases investment in AI infrastructure. While Azure growth continues to support the stock, investors are assessing whether demand for cloud and AI products can offset the rising costs of expanding and operating these services.
The Xbox price increase adds a smaller reminder that higher memory and storage costs are affecting parts of Microsoft’s business, though the larger investor debate remains on cloud margins and AI returns. Investors will be following closely whether Azure and AI services can keep driving growth while limiting further pressure on profitability.
Should you buy stock in Microsoft right now?
Before you buy stock in Microsoft, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Microsoft wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $387,428!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,221,398!*
Now, it’s worth noting Stock Advisor’s total average return is 895% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 25, 2026.
Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Microsoft, and Oracle. The Motley Fool has a disclosure policy.
Recommended Articles
