Microsoft Suffers $357 Billion Market Loss

Microsoft suffered a historic single-day market value decline of $357 billion in late January 2025 despite reporting quarterly earnings that beat Wall Street expectations. Investors reacted to signs of Azure revenue growth deceleration and massive AI-related capital expenditures, including projections exceeding $80 billion annually, prompting broad tech-sector sell-offs. The move signals heightened scrutiny of AI investment returns and raises questions about future valuation and monetization timelines.