Microsoft closes worst quarter on Wall Street since 2008 on AI concerns: 'Redmond is in a pickle'

Microsoft's stock has experienced a dramatic decline, closing the first quarter of 2026 down 23%, its largest drop since the 2008 financial crisis. Investors are increasingly worried about the company's return on investment in artificial intelligence initiatives, particularly its Copilot product, which has seen minimal user adoption. Despite these challenges, Microsoft continues to show strong growth in its Azure cloud services, which reported a 39% revenue increase in the last quarter.