TheBadPlaceUS Top News and Analysis | Microsoft is the worst performing Mag 7 stock this year. Goldman believes that's about to change
Microsoft is the worst performing Mag 7 stock this year, with shares down 23% in the first quarter of 2026—the company's weakest quarterly performance since 2008. This underperformance has dragged the stock below even the S&P 500’s modest 3.5% year-to-date decline, as investors remain concerned that emerging AI tools like Claude Cowork could disrupt Microsoft’s dominant productivity suite, Microsoft 365, which has long been a core revenue driver.
Despite these headwinds, Goldman Sachs maintains a buy rating on Microsoft with a $600 price target, implying nearly 61% upside from recent levels. Analyst Gabriela Borges notes that the deceleration in Microsoft 365 growth has already slowed, Copilot adoption metrics are improving, and uptake of the company’s premium AI-enabled enterprise licenses is expected to meaningfully impact results within the next nine months. Although only 3% of commercial Office customers had adopted the Copilot AI add-on by end-March, Goldman believes AI will become an increasingly integral part of Microsoft’s product ecosystem.
The firm argues that AI-related risks to Microsoft’s business are already reflected in the stock price, and that the company remains best positioned among its peers to capitalize on AI-driven product cycles—spanning AI infrastructure, Copilot integration, and agent orchestration across platforms. This view aligns with broad Wall Street consensus, as 55 of the 60 analysts covering Microsoft rate the stock a buy or strong buy, according to LSEG data.
Read more: https://www.cnbc.com/2026/04/06/goldman-expects-a-rebound-for-mag-7-underperformer-microsoft.html