On January 29, 2026, Microsoft Corporation experienced a historic single-day stock decline of approximately 10%, erasing roughly $357–360 billion from its market capitalization. This represents the company's most severe drop since March 2020.
The sell-off occurred despite Microsoft reporting strong quarterly earnings that exceeded analyst expectations. The company posted earnings per share of $4.14 versus a consensus estimate of $3.90, revenue of $81.2 billion (surpassing forecasts of $80.3 billion), and a 21% year-on-year increase in operating income.
The primary driver of investor concern was a strategic shift in capital allocation. Microsoft disclosed a 66% surge in capital expenditure to $37.5 billion, heavily directed toward data centers and artificial intelligence infrastructure. This massive investment, coupled with perceived cooling momentum in the Azure cloud business, led markets to question the timeline for tangible returns and future growth prospects.
Technical analysis following the plunge noted the stock fell into a broad bullish gap area above the psychological $400 level, testing the lower boundary of a downward-sloping channel established in early 2026. However, the session closed well above its intraday low with exceptionally high volume, indicating significant buying interest that lifted the price from around $422 to $433.
Both news sources explicitly state that this event has no direct connection to or impact on cryptocurrency markets. The incident is framed as a isolated equity market reaction to corporate strategy, highlighting volatility in investor response to strategic redirection within traditional technology sectors.
