Microsoft: An Inauspicious Start To 2026

The Insiders ForumInvesting Group LeaderFollow5ShareSavePlay(15min)Comment(1)SummaryThe shares of Microsoft Corporation are down 36% from its 2025 high, despite robust earnings growth and record remaining performance obligations.MSFT now trades at a 21.3x FY26E non-GAAP PE, with a 17.6% FY25–FY30 EPS CAGR and a PEG of 1.21, signaling improving valuation.AI-driven capex and cloud margin compression fuel negative sentiment, but commercial bookings and Copilot adoption are surging, with 15M+ paid Copilot seats.I rate MSFT as an Accumulate right now via covered call orders; a further 10% decline would move the stock into Buy territory for increased exposure.An analysis around Mr. Softie and its inauspicious start here in 2026 follows in the paragraphs below.Looking for a helping hand in the market? Members of The Insiders Forum get exclusive ideas and guidance to navigate any climate. Learn More » Wachiwit/iStock via Getty Images Shares of technology behemoth Microsoft Corporation (MSFT) are down 36% from their all-time high set in late July 2025 as the oft-stated fears about ROI from its ever-expanding AI spend weigh. The stock is down just overThis article was written byThe Insiders Forum9.08K FollowersFollowWe are a team of analysts led by Bret Jensen, Chief Investment Strategist at Simplified Asset Management. We run the investing group The Insiders Forum where we specialize in small and mid-cap stocks that insiders are buying.

The Insiders Forum portfolio managed by Bret Jensen consists of 12-25 top stocks in different sectors of the market that are attractively valued and have had some significant and recent insider purchases. Our goal is to outperform the Russell 2000 (the benchmark) over time.Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.