Overview
- Microsoft and Tesla have each fallen more than 20% this year, making them the weakest performers in the group known as the Magnificent Seven.
- The broader market has been sluggish, with the S&P 500 up less than 1% for 2026 at the time of the report.
- Microsoft reported 17% revenue growth in the quarter that ended Jan. 28.
- CEO Satya Nadella says Microsoft’s AI business is already larger than some of the company’s biggest franchises, and Azure growth has cooled.
- Tesla faces tougher electric-vehicle rivals that have squeezed margins, cutting net income to $3.8 billion from $7.1 billion a year earlier.