This “Magnificent Seven” Stock Is the Worst Performer of 2026. Is It Finally a Buy?

Microsoft’s stock price has fallen 13% so far in 2026, making it the worst performer among the tech giants known as the “Magnificent Seven.” While other members of this group have seen strong rebounds, Microsoft remains stuck, prompting investors to question whether its AI-driven growth is worth betting on.

The company’s fiscal third-quarter results provided some reassurance, with revenue rising 18% year over year to $82.9 billion and operating income climbing 20%. Its AI products now generate an annual revenue run rate of more than $37 billion, up 123% from a year earlier, demonstrating the growing demand for Microsoft’s cloud-based services and AI-powered tools.

However, concerns go beyond the stock price. Microsoft’s approach to monetizing its AI offerings has raised eyebrows among investors. The company wants to shift towards a per-user and usage-based pricing model, where customers are charged based on how much they use its AI tools. While this approach may make sense for some companies, it is unclear whether it will yield the desired results for Microsoft.

Satya Nadella’s vision of a future where Microsoft collects fees not just from seat sales but also from usage charges is an interesting one. But can it be executed effectively? The company has already started rolling out usage-based pricing for its GitHub coding assistant, and investors are waiting to see if this strategy will pay off.

Microsoft’s AI ambitions remain on track, with a roughly 27% stake in OpenAI and a non-exclusive license to its technology through 2032. However, the lack of progress on its stock price is starting to raise questions about whether the company’s growth trajectory has finally plateaued. Is Microsoft’s struggle a temporary blip or a sign of deeper issues?

The tech industry is known for its volatility, and Microsoft is no exception. As AI continues to drive innovation and growth in the sector, investors would do well to keep a close eye on this company’s performance. Will Microsoft’s stock price finally rebound, or will it remain stuck at the back of the pack? Only time will tell.

Microsoft’s story is a microcosm of the broader AI narrative. As more companies invest in AI and cloud-based services, they face challenges around monetization and scalability. Microsoft’s attempt to move towards usage-based pricing is an interesting experiment, but its success remains uncertain.

The rise of AI has created a new set of winners and losers in the tech industry. Companies that can successfully harness its power will reap the rewards, while those that struggle will be left behind. Microsoft’s story serves as a reminder that even the most promising companies can stumble when it comes to executing their vision.

As investors await Microsoft’s next move, one thing is clear: the tech industry is full of surprises. Will Microsoft’s stock price finally rebound, or will it remain stuck at the back of the pack? Only time will tell, but this story is far from over.