Microsoft (MSFT) was Hurt by the “SaaSmaggedon” Market Reaction

Microsoft (MSFT) was Hurt by the “Saa Smaggedon” Market Reaction Soumya Eswaran Mon, May 25, 2026 at 10:47 PM GMT+7 3 min read ^GSPC MSFT Yachtman Asset Management released its first-quarter 2026 investor letter for its AMG “Yacktman Focused Fund”. A copy of the letter is available to download here. The Fund returned 10.37% for the first quarter, outperforming both the Russell 1000® Value Index and the S&P 500 Index, which returned 2.10% and -4.33%, respectively. The U.S. markets continue to post new highs, with the S&P 500® having compounded at mid-twenties percent returns from 2023 to 2025. The letter noted that there are no indications of a slowdown in the US market, despite significant geopolitical events. The Fund remains disciplined, investing in companies and building a portfolio of strong, risk-adjusted returns throughout the market cycle, emphasizing a long-term strategy for differentiated returns. In addition, please check the Fund’s top five holdings to know its best picks in 2026.

In its first-quarter 2026 investor letter, Yacktman Focused Fund highlighted Microsoft Corporation (NASDAQ:MSFT). Microsoft Corporation (NASDAQ:MSFT) is a multinational software company that develops and supports software, services, devices, and solutions, holding dominant positions in software, cloud infrastructure, generative AI, and gaming. On May 22, 2026, Microsoft Corporation (NASDAQ:MSFT) stock closed at $418.57 per share. One-month return of Microsoft Corporation (NASDAQ:MSFT) was -1.47%, and its shares lost 7.02% over the past 52 weeks. Microsoft Corporation (NASDAQ:MSFT) has a market capitalization of $3.11 trillion.

Yacktman Focused Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q1 2026 investor letter: