Microsoft Stock Tumbles in Longest Losing Streak Since 2011
Microsoft Corp. is currently experiencing its most significant stock market downturn in more than a decade, with shares declining for eight consecutive trading days. This sustained selloff has erased nearly $350 billion from the company's market valuation, signaling a potential shift in investor sentiment toward the artificial intelligence sector.
The stock fell by as much as 0.8% on Friday, November 7, 2025, putting it on track to record its longest period of daily losses since a nine-day decline that concluded in November 2011. This prolonged pressure on one of the world's largest technology companies reflects growing caution among investors who had previously driven a massive rally in AI-related stocks.
Key Takeaways
- Microsoft shares have fallen for eight consecutive days, the longest streak since 2011.
- The stock has dropped 8.6% during this period, wiping out nearly $350 billion in market value.
- The decline is linked to broader investor uncertainty surrounding the artificial intelligence market.
- This marks a significant cooling-off period after months of intense AI-driven market gains.
A Historic Downturn for a Tech Titan
The eight-day slide represents a notable event for Microsoft, a company that has been a consistent leader in the market for years. The last time the software giant faced such a prolonged period of negative performance was over 14 years ago, highlighting the unusual nature of the current market pressure.
Over the course of this losing streak, the company's stock has fallen by 8.6%. While this percentage may seem modest on its own, it translates into a staggering loss of market capitalization due to Microsoft's immense size.
Putting the Loss in Perspective
The nearly $350 billion in erased market value is a figure larger than the entire Gross Domestic Product (GDP) of countries like Finland or Chile. It is also greater than the individual market caps of many major global corporations.
This downturn suggests that the seemingly unstoppable momentum behind big tech, fueled by the promise of AI, may be facing its first serious test. Investors appear to be reassessing their positions after a period of rapid and substantial gains.
The AI Boom Hits a Speed Bump
For much of the past two years, excitement surrounding advancements in artificial intelligence has propelled stocks like Microsoft to record highs. The company's significant investments in AI, particularly through its partnership with OpenAI, positioned it as a primary beneficiary of the technological revolution.
However, the recent selloff indicates that this enthusiasm is being tempered by caution. Market analysts suggest several factors could be at play, including concerns about the high costs of developing and running advanced AI models and questions about the timeline for achieving widespread profitability from these ventures.
"What we're seeing is a natural market correction," one market analyst commented. "The initial AI hype created valuations that were perhaps disconnected from near-term earnings reality. Investors are now taking profits and adopting a more wait-and-see approach to determine which companies can truly monetize their AI investments effectively."
This shift doesn't necessarily mean the AI boom is over. Instead, it likely marks a transition from a phase of speculative excitement to a more mature market where investors demand tangible results and sustainable business models.
Broader Implications for the Tech Market
Microsoft's struggles are not happening in a vacuum. The pressure on its stock is indicative of a wider trend affecting other major technology companies that have also staked their futures on artificial intelligence. When a market leader like Microsoft falters, it often creates a ripple effect across the entire sector.
The 2011 Precedent
The last time Microsoft experienced a selloff of this duration was in November 2011. That period was marked by different economic concerns, including the European sovereign debt crisis and uncertainty about the global economic recovery. Today's concerns are more focused on technology-specific valuations and the path to AI profitability.
Investors will be closely watching to see if this trend continues. A key question is whether this is a temporary cooldown or the beginning of a more significant re-evaluation of the entire tech sector's value. The next few weeks of trading will be critical in determining the market's direction and whether confidence in the long-term AI narrative can be restored.
For now, the market has sent a clear signal: after a period of unbridled optimism, a dose of realism is setting in. The focus is shifting from the potential of AI to the practicalities of turning that potential into profit.