Trillion-dollar market value evaporates! Copilot's performance falls short of expectations Microsoft Corporation (MSFT.US) share price encounters worst performance since 2008 financial crisis.

Under the dual pressure of cooling artificial intelligence narrative and market expectation adjustment, Microsoft Corporation (MSFT.US) has continued to weaken, experiencing the weakest period since the financial crisis. On Wednesday, Microsoft Corporation's stock fell by 0.46%, closing at $371.04, marking the lowest closing level since April 2025. Data shows that the stock has performed poorly this year, heading towards its worst start to a year on record, and is also expected to record its largest quarterly decline since the fourth quarter of 2008. Compared to the historical closing high of $542.07 in October 2025, Microsoft Corporation's stock price has now fallen by nearly 32%. One important reason for the market sentiment turning weak is that the progress of AI products being implemented has been below expectations. UBS analysts recently pointed out in a report that Microsoft Corporation's core AI product, Microsoft 365 Copilot, has been "disappointing," with market acceptance slower than expected. The institution still maintains a "buy" rating, but has lowered the 12-month target price from $600 to $510, emphasizing the need for significant improvement in Copilot's performance to drive the stock price back to a valuation premium. Microsoft Corporation has stated that Copilot has been restructured over the past year to fully leverage technological advancements from OpenAI and Anthropic, and as of the quarter ending in December last year, user usage has been "very good". However, market feedback remains cautious. Analysts point out that the current subscription user base for Copilot is approximately 15 million seats, still below market expectations, especially in the Asian market where enterprise customers generally feel that its value has not been fully realized. In addition, there is a divergence in market outlook for Microsoft Corporation's cloud business growth. The company remains optimistic about the demand prospects for Azure, but has not provided more guidance on revenue growth or compute expansion for future quarters. Analysts believe that changes in GPU resource allocation may still limit Azure's growth pace in the short term. It is worth noting that Microsoft Corporation has adopted an "open collaboration" strategy in the AI competition, such as partnering with Anthropic to develop related functionalities for Copilot, which some analysts see as a "necessary and wise response". However, overall, the market is still waiting for more clear commercialization results. Affected by the continuous decline in stock price, Microsoft Corporation's market value has evaporated approximately $1.28 trillion since its historical high. Nevertheless, some institutions believe that the current valuation is attractive.