Microsoft stock (MSFT) is showing signs of a potential downturn, with an alarming pattern emerging on the stock’s daily charts. MSFT’s technical indicators display a concerning outlook for the stock as the equity continues to take a hit from the broader market sell-off. MSFT’s recent losses have led to the stock losing the $400 support level, as it hopes to regain that level before the weekend. Upon the market close Wednesday, MSFT traded at $398.

Amid the current trading levels, the stock has triggered a death cross formation for the first time in almost a decade, according to market analysts. This pattern, characterized by a short-term moving average (MA) crossing below a long-term moving average, specifically, a downward-sloping 200-day moving average, has historically been viewed as a bearish signal.

Despite the signs of slipping up, several market experts still have high hopes for MSFT stock in 2025. There is no shortage of reasons for investors to be excited about Microsoft’s trajectory in 2025. Indeed, the Windows developer looks poised to make headway in a number of critical facets, including the still-developing quantum computing sector.

Microsoft stock holds a $501 median price target according to analysts surveyed by CNN. That would represent a 25% increase from its current position. Alternatively, it has a low-end price projection of the aforementioned $425, serving as its downside risk, and is still up 6% from its current position.

On the other end, Microsoft MSFT has a high-end price forecast of $650, representing a 62% upside for the stock. Additionally, of 58 total analysts, 93% currently hold a buy rating on the stock. Moreover, just 7% have called to hold, with a sell rating not issued among them.