Microsoft Is the Worst-Performing Mag 7 Stock in 2026: Here's Why - Microsoft (NASDAQ:MSFT)

Microsoft has slumped more than 30% from its all-time high, shrinking from a $3.88 trillion valuation to about $2.82 trillion. The company projects capital expenditure of $190 billion for the year, with roughly $25 billion of that due to increased costs, a 61% rise from last year. In the latest quarter, revenue rose 13% as Personal Computing declined 1% to $13.2 billion, while Productivity and Business Processes grew 17% and Intelligent Cloud 30%. Operating margin is expected to fall to 44% from 46.3%. Investors worry Copilot is losing market share to rivals like ChatGPT and Anthropic. Yet the stock remains undervalued, with a forward P/E of about 22.