Microsoft’s $190 billion 2026 capex plan sparks investor caution despite strong earnings and revenue growth.
Microsoft shares have underperformed the S&P 500 in 2026, declining 19% year-to-date compared with a 10% gain for the index. The stock has traded below its 200-day moving average all year, reflecting investor unease over its $190 billion capital expenditures plan, a 61% increase from 2025.
While Microsoft’s revenue and earnings continue to exceed estimates, concerns persist about rising memory costs and the timeline for converting infrastructure investments into free cash flow growth. Analysts note that Azure’s acceleration and Copilot trends support the spending but may limit near-term upside.
SpaceX’s debut briefly valued the company above $3 trillion, surpassing Microsoft’s $2.9 trillion market cap at the time. Microsoft’s stock closed below $229.40, the peak level reached by SpaceX shares earlier in the session.