Microsoft is a hugely successful company capable of maintaining a healthy stock price. In which case, why is Microsoft stock going down right now? Get the latest on the falling MSFT stock value, along with whether now is a good time to buy or sell Microsoft shares.
Why is the Microsoft stock price dropping? (2021)
Microsoft exceeded revenue predictions by $800 million in the fiscal quarter ending March 31, 2021. Some investors are selling MSFT stock, thus lowering its price, likely because they believe revenue should be even higher.
Some traders may have been expecting more from Microsoft, likely due to the current climate. Although many companies are struggling at the hands of the ongoing pandemic, others, including Microsoft, are benefitting from it. The shift towards working from home is boosting home computing and software sales, while extra free time is also benefiting the Xbox gaming division.
Setting this aside, stocks are a volatile marketplace in general. MSFT stock price can drop seemingly out of nowhere, becoming somewhat of a self-fulfilling prophecy as investors see the downward trend and hit sell without context. Forecasts suggest that the Microsoft stock price will recover and increase later this year, though they could be inaccurate.
According to the Economy Forecast Agency (EFA), the MSFT stock price will continue to decline over the summer before recovering in September and climbing significantly from there. Naturally, that’s just an estimate and things could differ in reality.
As always, the highs and lows of stocks are exciting for both good and bad reasons. Here’s hoping investors come out safe on the other side.
For more on stocks and trading, check out Elon Musk’s most recent influences. The Tesla CEO’s appreciation for Baby Shark is spiking two companies and a cryptocurrency. Speaking of crypto, Musk is currently facilitating a Dogecoin resurgence. It’s only fitting, really, as his SNL appearance was the original cause of the DOGE crash.