Microsoft Stock Posts Best Run in 26 Years, Wipes Out 2025 Losses
MSFT is on a historic winning streak as heavy capital spending finally starts paying off for the tech giant.
Microsoft is on a tear. The stock just notched a rally not seen in 26 years, and in doing so completely erased every point of loss it had accumulated since January. If you sat on your hands through the early 2025 selloff, you're now back to even — and the bull case says there's more room to run.
The fuel behind this move? Capital spending that's actually working. Microsoft poured enormous resources into AI infrastructure and cloud buildout, and the market spent months punishing the stock for it. Now analysts are pointing to signs that the investment is paying off — and that's the kind of narrative shift that keeps momentum alive for weeks, not days.
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When a name this large reclaims its yearly losses in a single surge, it tells you something about institutional conviction. Big money doesn't chase a $3 trillion company without a thesis. The thesis here is simple: the capex cycle is turning from a headwind into a tailwind, and earnings are starting to reflect that.
For active traders, the phrase to lock in is "has legs." That's the language analysts are using to describe this rally — not a dead-cat bounce, not a short squeeze, but a fundamentally supported move. That distinction matters if you're deciding between a quick flip and a hold.
Microsoft isn't a meme stock. When it moves like this, the setup tends to have staying power. Watch how it handles any near-term pullbacks — if buyers step in fast, that confirms the new trend. Continue reading at MarketWatch.com
