In recent weeks, the stocks of Microsoft and Nvidia have continued their steep corrections, breaking through important price levels in parallel. This trend has raised concerns among investors, especially as analysts warn that a break below these critical price targets could lead to further declines.
On April 2, 2025, Microsoft was among the day's losers, trading down by 0.5 percent at 380.28 USD in NASDAQ trading. The stock marked its daily low at 376.62 USD and opened at 378.00 USD. The volume for Microsoft shares in NASDAQ trading reached 794,454 on that day. This recent downturn is part of a broader trend where Microsoft and other tech giants have given back gains made in 2024, a year that saw significant volatility in the markets.
According to an analysis, starting at 370 USD, Microsoft’s stock price surged almost 100 USD before recently retracting to the same level. "The summer of 2024 was extremely volatile," said an analyst, highlighting the unpredictable nature of the market during that period. The company’s stock performance has drawn parallels to previous market lows, particularly the low recorded on March 31, 2025, which is reminiscent of early January 2024.
Historically, the stock reached its 52-week high on July 6, 2024, at 468.33 USD, but has since struggled to maintain momentum. The 52-week low was marked just a day before, on April 1, 2025, at 367.26 USD. Analysts caution that if Microsoft’s stock dips below this significant threshold, it could provide bearish investors with further momentum to push prices down even more.
Despite the current challenges, some analysts remain optimistic about the market's overall direction. The U.S. Federal Reserve's recent decision to reduce the withdrawal of liquidity from the market is generally seen as a bullish indicator, potentially lifting stock prices across various sectors.
In the context of these fluctuations, Microsoft shareholders received a dividend of 3.00 USD in 2024, with estimates suggesting an increase to 3.27 USD in the upcoming year. Microsoft recently provided insights into its financial health, announcing a quarterly earnings per share of 3.24 USD for the quarter ending December 31, 2024, compared to 2.94 USD in the same quarter the previous year. Revenue for that quarter was reported at 69.63 billion USD, up from 62.02 billion USD year-over-year.
Looking ahead, analysts predict that Microsoft's earnings per share for 2025 could reach 13.17 USD, indicating potential for recovery if the company can navigate the current market challenges effectively.
As for the broader tech landscape, competitors like Apple have also faced difficulties, though they remain better positioned than Microsoft. Apple’s stock has shown resilience compared to early 2024 levels, while Microsoft’s reliance on the AI hype has left it more vulnerable to corrections as that excitement wanes.
Gold and silver prices are also noteworthy in this economic environment. Gold is currently trading at 3,128 USD, while silver is priced at 33.87 USD, just below its last high of 34.87 USD from the fall of 2024. The performance of these precious metals can often reflect investor sentiment and market stability.
In summary, Microsoft’s stock is now approximately 90 USD below its all-time high, a position that may offer a buying opportunity for long-term investors. The overall market shows signs of potential recovery, but the path forward remains uncertain as tech stocks grapple with recent corrections and changing economic conditions.
