Microsoft's market cap evaporates by $570 billion, heading for worst monthly performance since 2000

The share price of Microsoft (MSFT.O) is headed for its worst month since the dot-com era, as investors continue to worry about the software giant's prospects in the age of artificial intelligence. The stock has fallen 17% in June, on track for its worst monthly performance since December 2000. The sell-off has erased more than $570 billion from the company's market value. The stock hit its lowest closing price since 2023 on Thursday before rebounding on Friday.

“Microsoft is under dual pressure—concerns over AI spending and the disruptive impact of AI,” said Jack Ablin, chief investment strategist at Cresset Wealth Advisors, which holds the stock. “Although it seems like a good investment from a low valuation perspective, I feel that investors are currently following a ‘sell first, ask questions later' approach.” (Jinshi)