He writes: “The fact that Nadella is spending so much time with the teams building AI products, even rolling up his sleeves and building prototypes himself, says a lot about Microsoft’s current predicament. After all, this is a $3 trillion company, not some scrappy startup where the CEO routinely logs on for coding sprints with the developers. Nadella is concerned enough about the company’s AI strategy that last October he announced he was stepping back from some commercial duties to focus on AI research, product innovation, and the build-out of AI data centers.”
Microsoft shares have slid from their all-time high as investors reprice the software complex through what Wall Street is calling the “SaaSpocalypse,” a name for the brutal repricing of subscription-software multiples in the face of AI coding agents. Microsoft, once positioned as the AI cycle’s biggest beneficiary, has become one of its most prominent casualties. Microsoft’s share price declined 34% from Oct. 28, 2025 through March 27, 2026.
Everyone likes to see a comeback.
