Microsoft loses billions of dollars in few hours; here’s how the tech giant’s fortunes nosedived

The shares of Microsoft dropped, and it has stood as the second-largest in history after Nvidia.

The giant tech company Microsoft witnessed a grand loss of more than USD 400 billion in its market value. What’s shocking is that the loss happened in just a few hours. This marks one of the worst days for the stock market, historically. The loss of the company has come as a shock to all the markets globally. This has left everyone with the question, “What went wrong for the tech giant to incur such a loss?”

What exactly happened to the shares of Microsoft?

On the trading front, the stocks of Microsoft declined sharply, which led to the loss of over USD 400 billion. The wiping away of a grand amount from the market valuation happened within just a few hours. While it was under sell-off, there also came a point when the overall worth of the company also declined by nearly USD 424 billion. This has shocked everyone because the stocks of Microsoft are counted as one of the strongest and most valuable on the global front.

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How did the market react?

The impact of the decline of Microsoft shares has increased the global stock market’s volatility. It has also led to the fall of heavy-tech indices as a reaction. Not just Microsoft, but many tech firms suffered a drop in their valuations. This happened as the sentimental tendency of people became more cautious.

Which company suffered such a loss in the past?

The shares of Microsoft dropped, and it has stood as the second-largest in history. The shares declined 12 per cent by 1:20 pm. Bloomberg reported that earlier on January 27, 2025, Nvidia witnessed a massive decline in its shares by USD 592.7 billion. It happened after the launch of DeepSeek’s low-cost AI model.

Bloomberg reported that the Chief Market Startegist at Miller Tabak + Co., Matthew Maley said, “Since it is becoming even more evident that Microsoft is not going to garner a strong ROI from their massive AI investment, their shares need to be revalued back down to a level that is more consistent with its historic fair value.”