Microsoft Shares Plunge 20% in June, Worst Month Since 2000
Microsoft is on pace for its steepest monthly decline in 25 years, erasing over $1 trillion in market cap since its peak.
Microsoft Corp. is suffering its worst monthly stock performance in a quarter century, with shares tumbling more than 20% in June alone — a collapse that has stripped the Redmond, Washington-based tech giant of its perch among the world's most valuable companies. The selloff marks the steepest single-month decline since December 2000, a period synonymous with the bursting of the dot-com bubble.
The scale of the destruction in shareholder value is staggering. Just twelve months ago, Microsoft commanded a market capitalization hovering near $4 trillion, a figure that placed it at the apex of global finance. That valuation has since cratered to approximately $2.65 trillion — a loss of well over $1 trillion — pushing the company behind Nvidia in the rankings of the world's most valuable publicly traded firms.
The fall from grace is symbolically significant. Microsoft had spent much of the past two years riding a wave of artificial intelligence enthusiasm, with investors betting heavily that its partnership with OpenAI and integration of AI tools across its product suite would sustain premium valuations. The current slide suggests that investor patience with lofty AI-driven price targets may be thinning as expectations collide with near-term financial realities.
For context, the December 2000 comparison is a sobering one. That era saw tech valuations unwind violently as speculative excess gave way to fundamental reckoning. Whether the current pressure on Microsoft reflects a similar structural reassessment of Big Tech valuations — or a more temporary correction — is a question now dominating Wall Street conversations heading into the second half of 2025.
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