Microsoft lost $357 billion in market cap in earnings plunge

In a historic single-day drop, Microsoft's stock fell ~10% on January 29, 2026—its steepest decline since March 2020. The sell-off wiped out $357 billion in market value, closing its cap at $3.22 trillion.

Key drivers from the earnings report:

· Azure cloud growth of 39% slightly missed estimates.
· Weak revenue guidance for the Windows-led PC segment.
· CFO Amy Hood noted AI compute capacity was prioritized for internal projects like Microsoft 365 Copilot over customer data center supply.

Analysts are split: some urge faster data center build-out, while others defend the long-term strategy, viewing capacity constraints as temporary.

The reaction underscores market nerves about execution in the AI race, even as leadership stresses focus on sustainable growth over short-term performance.
https://www.cnbc.com/2026/01/29/microsoft-market-cap-earnings.html

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