MSFT sentiment hit 0.78, its highest in weeks, as Reddit users called the stock undervalued after a 30-40% software sector collapse.
Value-focused subreddits like r/ValueInvesting and r/stocks dominated discussion, with users buying LEAPS and calling MSFT a 'generational opportunity.'
Same-day news included Oracle denying a report that security concerns killed a potential $3 billion cloud deal with Microsoft, while class-action lawsuits over Copilot disclosures added legal overhang.
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Reddit Sees Value in the Wreckage
The most engaged posts came from r/ValueInvesting, where users argued that MSFT's P/E ratio of 22 — near a 10-year low — made it a compelling buy. One user detailed buying LEAPS after the selloff, calling the stock 'very cheap' and pointing to Azure growth and OpenAI's cloud commitment as catalysts. Another post labeled mega-caps like MSFT a 'generational buying opportunity,' comparing the setup to April 2025.
But not everyone was bullish. A widely upvoted post on r/wallstreetbets described losing money on every position since June, including MSFT, calling himself 'exit liquidity.' On r/stocks, one user sold their MSFT shares to buy a growth ETF, citing a desire to reduce single-stock risk. The tension between value hunters and fearful sellers drove the conversation.
A separate thread on r/ValueInvesting and r/stockmarket captured the broader mood: a user expressed shock at the 'unhinged' 30-40% collapse of profitable software stocks like ServiceNow, Salesforce, and Microsoft in less than three weeks, despite strong fundamentals and AI tailwinds. The post, which garnered over 800 combined upvotes, questioned whether the market had 'completely decoupled from reality.'
News Context: Cloud Deal Denial and Legal Headwinds
Same-day news added layers to the MSFT narrative. Oracle denied a report that security concerns killed a potential $3 billion cloud infrastructure deal with Microsoft, stating that the companies remain partners and are exploring collaboration opportunities. The denial came as Microsoft plans to spend $190 billion in 2026 on data center expansion, underscoring its aggressive cloud buildout.
On the legal front, Rosen Law Firm announced a class-action lawsuit on behalf of Microsoft investors who purchased stock between May 2025 and January 2026, alleging the company made false statements about its Copilot AI products. A separate lawsuit related to the Activision Blizzard merger also surfaced, though it targets Activision's board rather than Microsoft directly. These disclosures may have contributed to the cautious tone among some Reddit users.
The broader market context also played a role. A Benzinga report highlighted that passive index funds have crossed $2.6 trillion in assets, with experts warning that mechanical flows into mega-cap stocks like MSFT are distorting price discovery. This theme resonated with Reddit users who questioned whether analyst upgrades — one firm raised MSFT's price target to $600 — matter when the stock keeps falling.
Retail Sentiment Turns Bullish Despite the Noise
Despite the legal overhang and sector-wide pain, MSFT's sentiment score of 0.78 was the highest among the top-ranked tickers on June 17. The stock's rank delta of +42 — a massive jump — signals that retail investors are increasingly focusing on Microsoft as a potential value play. Whether the software selloff continues or reverses, the debate on Reddit is now squarely centered on whether MSFT's fundamentals will eventually win out.
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