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Microsoft Slides 17% on Azure Weakness, Burry Bet Rebounds

6/30/2026

50 6 Full Breakdown

Summary

Microsoft Slides

Microsoft shares fell 17% in June 2026, erasing more than $570 billion in market value.
The decline marked the worst month since December 2000 and the lowest closing price since 2023.
Investors cited weak Azure growth and a $190 billion capital-expenditure plan through December as drivers.
Michael Burry bought $700-strike call options expiring 2028, prompting the stock to rise 5.7% to $372.97, its best day since May 2025.

Summary

Microsoft Faces AI Fallout

Microsoft ended free built-in Copilot access in some Office apps.
Microsoft renamed its AI tools.
Capital spending rose from $24 billion in fiscal 2021 to $88 billion in fiscal 2025.
Investors are selling first and asking questions later, showing deep unease about the AI spend surge.
Jack Ablin, chief investment strategist at Cresset Wealth Advisors, warned that AI could make Word or Excel obsolete.

Summary

Microsoft Defies Decline

Microsoft’s stock fell 38% during the 2022 inflation shock, outpacing the S&P 500’s 25% decline.
In the 2020 pandemic crash, Microsoft lost 28% versus a 34% market fall, showing better resilience.
Microsoft generated $170.1 billion in operating cash flow and plans $190 billion in capital expenditures.
Microsoft’s debt equals roughly 2% of market cap, far below the S&P 500 average of 20.8%.

History

Historical Context

After the March 2000 dot-com bust collapsed Nasdaq valuations and cut venture-capital capacity to roughly half its 2001 level by mid-2003, regulators tightened oversight of speculative tech spending. That legacy of tighter scrutiny now frames investors’ reaction to Microsoft’s June 2026 announcement of a major AI program, which sent the stock down 17% to $372.

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Microsoft Slides

Microsoft shares fell 17% in June 2026, erasing more than $570 billion in market value.
The decline marked the worst month since December 2000 and the lowest closing price since 2023.
Investors cited weak Azure growth and a $190 billion capital-expenditure plan through December as drivers.
Michael Burry bought $700-strike call options expiring 2028, prompting the stock to rise 5.7% to $372.97, its best day since May 2025.

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