Microsoft (MSFT) Stock Falls 11%: Time to Buy or Sell?

Microsoft stock (MSFT) is in a precarious situation, down as much as 11% in 2025 thus far. Growing economic anxieties in the United States, fueled by the implementation of tariffs and an escalating trade war, are fostering a generally unfavorable market climate for MSFT. Thus, many experts are suggesting that as the stock dips, now could be the time to sell. Alternatively, other experts suggest this falloff is just the beginning.
Microsoft stock was among the hardest hit from the recent Wall Street downturn. Although things bounced back with US President Trump’s 90-day tariff pause, stocks tumbled once again just a day later. Now, several bank institutions are revising their price projections for Microsoft stock. Should you buy or sell MSFT now?
Microsoft Price Predictions Revised: Now’s the Time to Buy or Sell?
Analysts at Bank of America recently revised their stock forecast for Microsoft (MSFT), slashing previous expectations. “We are lowering revenue and operating income estimates across the software group to reflect heightened macro uncertainty,” BofA Securities analysts said in a client note.
The analyst team said first-quarter results are likely unaffected, given that tariff-related stress didn’t start until April.”The BofA economics team is not forecasting a recession at this point,” the report said. “However, we expect management teams to lower the outlook for Q2 and the remainder of calendar 2025 on a constant currency basis to reflect added uncertainty.” Analyst Brad Sills reiterated his buy rating on Microsoft stock but lowered his price target to 480 from 510.
Additionally, Microsoft (MSFT) has recently gotten a price target cut and an outperform rating from Wedbush. Specifically, they note that their recent update was driven by ongoing economic challenges affecting the market as a whole.
Microsoft (MSFT) stock currently sits around $371. MSFT is trading near the bottom of its 52-week range and below its 200-day simple moving average. Most analysts suggest buying the stock now, anticipating a climb to north of $450 in the coming months.
Now, the question is, will things turn around for the Windows developer? Microsoft has emerged as one of the leaders in artificial intelligence over the last year. The firm made waves when it became an early investor in ChatGPT developer OpenAI, and that has paid off massively. Moreover, its AI investment has fueled success in its cloud sector. The company has seen its cloud revenue increase 20% to $24 billion in Q1, according to a recent report. These factors could point Microsoft and MSFT stock in the right direction in the remainder of 2025.
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Microsoft (MSFT) Stock Falls 11%: Time to Buy or Sell?

Microsoft stock (MSFT) is in a precarious situation, down as much as 11% in 2025 thus far. Growing economic anxieties in the United States, fueled by the implementation of tariffs and an escalating trade war, are fostering a generally unfavorable market climate for MSFT. Thus, many experts are suggesting that as the stock dips, now could be the time to sell. Alternatively, other experts suggest this falloff is just the beginning.
Microsoft stock was among the hardest hit from the recent Wall Street downturn. Although things bounced back with US President Trump’s 90-day tariff pause, stocks tumbled once again just a day later. Now, several bank institutions are revising their price projections for Microsoft stock. Should you buy or sell MSFT now?
Microsoft Price Predictions Revised: Now’s the Time to Buy or Sell?
Analysts at Bank of America recently revised their stock forecast for Microsoft (MSFT), slashing previous expectations. “We are lowering revenue and operating income estimates across the software group to reflect heightened macro uncertainty,” BofA Securities analysts said in a client note.
The analyst team said first-quarter results are likely unaffected, given that tariff-related stress didn’t start until April.”The BofA economics team is not forecasting a recession at this point,” the report said. “However, we expect management teams to lower the outlook for Q2 and the remainder of calendar 2025 on a constant currency basis to reflect added uncertainty.” Analyst Brad Sills reiterated his buy rating on Microsoft stock but lowered his price target to 480 from 510.
Additionally, Microsoft (MSFT) has recently gotten a price target cut and an outperform rating from Wedbush. Specifically, they note that their recent update was driven by ongoing economic challenges affecting the market as a whole.
Microsoft (MSFT) stock currently sits around $371. MSFT is trading near the bottom of its 52-week range and below its 200-day simple moving average. Most analysts suggest buying the stock now, anticipating a climb to north of $450 in the coming months.
Now, the question is, will things turn around for the Windows developer? Microsoft has emerged as one of the leaders in artificial intelligence over the last year. The firm made waves when it became an early investor in ChatGPT developer OpenAI, and that has paid off massively. Moreover, its AI investment has fueled success in its cloud sector. The company has seen its cloud revenue increase 20% to $24 billion in Q1, according to a recent report. These factors could point Microsoft and MSFT stock in the right direction in the remainder of 2025.
Read More
