Microsoft's stock fell 23% in Q1, marking the worst quarter since the 2008 financial crisis. The company is under pressure to grow efficiently in AI while expanding its cloud AI infrastructure to meet demand. This comes as oil prices rise, potentially increasing costs for building data centers. Meanwhile, Microsoft's AI assistant Copilot is struggling to gain popularity compared to competitors like Google, OpenAI and Anthropic. Despite these setbacks, Microsoft reported a 17% revenue growth in Q4, accelerating from the previous year. Analysts argue that the selloff isn't justified and that Microsoft has pricing power with Office subscriptions.