Microsoft stock (MSFT) opened trading at $368 on Tuesday after a significant decline, falling nearly 20% in June from a high of $460. Analysts link the downturn to AI-related capital expenditures exceeding $190 billion, raising Wall Street concerns about profitability. The next earnings call is scheduled for July 29, 2026, with an anticipated EPS of $4.21.
Microsoft stock experienced a rough patch, plunging nearly 20% in June alone. The equity opened Tuesday’s trading bell at $368 after falling from a high of $460 to a low of $352.
MSFT is now among the worst-performing Magnificent 7 stocks. A lot of the downturn has been attributed to its AI capital expenditure reaching over $190 billion.
Wall Street is concerned the spending has gone overboard. The company might take a longer time to see profits from these investments.
The next earnings call is scheduled for July 29, 2026. Analysts expect the company to post an earnings per share of approximately $4.21 for the quarter.
A price prediction from the Zachs Research Team forecasts that Microsoft stock could climb above $400. The firm gave MSFT a ‘hold’ rating, urging traders not to sell the equity.
The forecast estimates that MSFT has slim chances of slipping below the $300 level. According to the prediction, Microsoft stock could reach a high of $473.
That represents an uptick of approximately 29% from its current price. An investment of $1,000 could theoretically turn into $1,290 if the prediction proves accurate.
