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Microsoft shares underperform software peers and a key ETF
Over the past three months, Microsoft stock gained 22.4%, trailing the State Street SPDR S&P Software & Services ETF’s 27.3% return in the same period.
Microsoft Corporation has a market capitalization of $3.7 trillion and operates across three main segments, Productivity and Business Processes, Intelligent Cloud, and More Personal Computing, with revenue tied to areas such as cloud, AI, productivity software, cybersecurity, and gaming.
Despite broader strength, Microsoft stock has slipped 8.8% from its 52-week high of $553.72 reached on Oct. 25, 2025. The shares are also down 4.4% year to date, and have underperformed on multiple timeframes versus the State Street SPDR S&P Software & Services ETF (XSW).
The article notes Microsoft has gained 22.4% over the past three months, compared with XSW’s 27.3% rise. It also highlights Microsoft’s underperformance over the past year, attributing it to investor caution about the cost of Microsoft’s AI ambitions, with heavy spending on items such as data centers and chips pressuring free cash flow.