Early Bird Prime for August 11, 2024

The 'Mag 7' stocks, the tech titans that once ruled the market with an iron fist, now look weaker after a particularly rough month. Yes, tech stocks are currently viewed as overvalued and declining.

Among these fallen giants is our old friend Microsoft (Nasdaq: MSFT), which has found itself in a bit of a pickle.

Microsoft, the tech behemoth that brought us Windows, Office, and the blue screen of death, is having a rollercoaster year. The stock is up 9.48% this year, but down 12.92% in the last 30 days.

So, what’s causing this dramatic nosedive? Well, Microsoft’s stock has taken a hit of over 12% in the past month, thanks to a perfect storm of factors. First, there's the broader tech sell-off, which has investors running for the hills. Then, there are concerns in the chip market, which is volatile. And let’s not forget Microsoft’s role in the recent Crowdstrike (Nasdaq: CRWD) outage, which didn’t exactly win them any popularity contests.

Adding fuel to the fire, Microsoft recently missed earnings in its cloud division. This miss overshadowed what were otherwise positive quarterly results, making investors jittery.

But before you start writing Microsoft’s obituary, let’s take a step back. Despite the recent dip, Microsoft’s long-term prospects remain as strong as ever. The recent decline has made its valuation more attractive. The company’s market cap exceeds $3 trillion.

So, should you buy the stock now that it’s down, or wait until the dust settles? Well, here’s the answer: