Microsoft shares tumble after Trump AI order and CEO's insider sale

Microsoft's stock fell 4.1% to $441.49 during Tuesday trading after President Donald Trump signed an executive order establishing a federal AI software review program. Although participation is voluntary, investors reacted negatively, pulling the share price down amid a broader retreat in AI‑focused equities.

The decline continued on Wednesday, with the stock dropping another 3.2% to $427.34 following a SEC filing that CEO Judson Althoff sold 15,500 shares at an average price of $460.99. The sale reduced Althoff’s personal holding by about 12.3%, leaving him with roughly 110,477 shares valued near $51 million. The insider transaction contributed to sentiment pressure despite recent positive product announcements at Microsoft Build 2026.