CHONGQING, CHINA – JANUARY 22: In this photo illustration, a smartphone displays the logo of Microsoft Corporation (NASDAQ: MSFT), a U.S.-based technology company best known for its software, cloud computing and artificial intelligence businesses, in front of a screen showing the company’s latest stock market chart on January 22, 2026, in Chongqing, China. (Photo illustration by Cheng Xin/Getty Images)
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Microsoft (MSFT) stock has dropped 10% in a single day. The recent decline indicates renewed worries about sluggish Azure cloud growth, increasing AI costs, and dependency on OpenAI. See our take on – What Went Wrong With Microsoft Stock? – for more details.
However, significant declines like this typically bring up a more challenging question: is the weakness a temporary phase, or does it signal deeper issues within the company?
Before assessing its resilience during downturns, let us examine Microsoft’s current standing.
These indicators suggest a strong operational performance, coupled with a very high valuation—rendering the stock relatively expensive. For more details, refer to Buy or Sell MSFT Stock.
This leads us to a crucial factor for investors concerned about this downturn: how resilient is MSFT stock if the markets decline further? This is where our downturn resilience framework comes into play. If MSFT stock dips another 20-30%, reaching $303—can investors maintain their positions? Evidence shows that the stock has been more resilient than the S&P 500 index during several economic downturns, based on (a) the extent of the stock’s decline and (b) the speed of its recovery. Below, we explore each of these downturns in detail.
2022 Inflation Shock
- MSFT stock decreased by 37.6% from a peak of $343.11 on 19 November 2021 to $214.25 on 3 November 2022, compared to a peak-to-trough drop of 25.4% for the S&P 500.
- Nevertheless, the stock fully bounced back to its pre-crisis peak by 15 June 2023.
- Since then, the stock has risen to a high of $542.07 on 28 October 2025, and is currently trading at $433.50.
MSFT Stock Performance During The 2022 Inflation Shock
Trefis
2020 COVID Pandemic
- MSFT stock decreased by 28.2% from a high of $188.70 on 10 February 2020 to $135.42 on 16 March 2020, compared to a peak-to-trough reduction of 33.9% for the S&P 500.
- However, the stock completely recovered to its pre-Crisis peak by 9 June 2020.
MSFT Stock Performance During The 2020 COVID Pandemic
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2018 Correction
- MSFT stock diminished by 18.6% from its high of $115.61 on 1 October 2018 to $94.13 on 24 December 2018, compared to a peak-to-trough decline of 19.8% for the S&P 500.
- Nonetheless, the stock had fully recovered to its pre-Crisis peak by 15 March 2019.
MSFT Stock Performance During The 2018 Correction
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2008 Global Financial Crisis
- MSFT stock plummeted by 59.1% from its peak of $37.06 on 1 November 2007 to $15.15 on 9 March 2009, compared to a peak-to-trough decrease of 56.8% for the S&P 500.
- However, the stock returned to its pre-Crisis peak by 6 November 2013.
MSFT Stock Performance During The 2008 Global Financial Crisis
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