Microsoft shares have fallen around 20% in 2026 amid bearish sentiment on software stocks tied to AI concerns, and the company will report its year-end earnings on July 29. The upcoming results and forward guidance are seen as crucial for investors, especially after recent layoffs and an Xbox business reset. Despite the uncertainty, the stock trades at 23 times trailing earnings, which some view as a reasonable valuation given its robust business and growth opportunities. The article notes that investing based on long-term fundamentals is safer than betting on short-term earnings reactions.
Microsoft CorporationEarnings report and forward guidance are upcoming; stock has fallen 20% but trades at 23x earnings, seen as reasonable by some.
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