Microsoft Corp. (NASDAQ: MSFT) wrapped up Tuesday, December 23, 2025, with a modest gain in regular trading and only a slight dip in early after-hours action—keeping the focus on two bigger forces heading into Wednesday’s open: holiday-thinned liquidity and the ongoing debate over AI-era spending, accounting, and returns.
Below is what happened with Microsoft stock after the bell today, what moved the broader tape, and what investors should keep on their radar before the market opens Wednesday, Dec. 24, 2025—a session that will be shortened ahead of Christmas. [1]
Microsoft stock price after the bell today (Dec. 23, 2025): the key numbers
MSFT regular session (Tuesday):
- Close:$486.85 (+0.40%)
- Open / high / low:$485.11 / $487.76 / $485.07
- Volume:~13.66 million shares [2]
MSFT after-hours (as of 4:30 p.m. ET):
- After-hours price:$486.79 (about -0.01% vs. the regular close)
- After-hours range:$486.51–$486.99 [3]
In plain English: no major after-hours shock hit MSFT on Tuesday. The stock’s post-close tape looked like “steady-to-slightly softer,” which is often how mega-cap tech trades when there’s no earnings, no major regulatory ruling, and no breaking M&A after the close.
Why Microsoft moved today: macro + “growth” leadership into a holiday week
Microsoft’s Tuesday action tracked a broader tone: U.S. stocks rose, and growth stocks led, after a burst of U.S. economic data. Reuters highlighted that Q3 GDP rose at a 4.3% annualized rate, while markets adjusted interest-rate expectations and trading volumes remained light heading into Christmas. [4]
Two details matter for MSFT investors heading into Wednesday:
- Holiday liquidity is already thin. Reuters noted volumes were light and expected to thin further as Christmas approaches, which can make even large, liquid names more sensitive to order flow. [5]
- The “AI trade” is back in focus. Reuters pointed to AI-linked names rebounding from a recent selloff tied to valuation and capex worries—exactly the narrative Microsoft lives inside because of Azure and AI infrastructure spending. [6]
Today’s Microsoft-specific headlines investors are parsing
Even without an earnings event, a few Microsoft-related items circulated on Dec. 23 that investors and analysts are likely to connect to the longer-term MSFT narrative: security, infrastructure, and AI-driven productivity.
1) Microsoft’s push toward Rust (and away from C/C++) is making headlines again
A widely shared post from Microsoft Distinguished Engineer Galen Hunt set an ambitious goal: eliminate C and C++ across Microsoft by 2030, leaning on “AI and algorithms” to rewrite large codebases. Multiple outlets tied the discussion to security and systems reliability—themes that matter for Windows, Azure, and enterprise credibility. [7]
Why it matters for the stock: this isn’t an overnight revenue catalyst, but it reinforces Microsoft’s pitch that it can run mission-critical infrastructure safely at scale—an argument that supports premium valuation for Azure and security tools over time.
2) Microsoft issued an out-of-band fix for a Windows Message Queuing issue
The Register reported Microsoft shipped an out-of-band update addressing a Message Queuing (MSMQ) issue introduced by the December 2025 update, impacting certain Windows and Windows Server versions. [8]
Why it matters for MSFT: enterprise patch issues rarely move the stock by themselves, but they feed into the ongoing market conversation about security posture and enterprise trust, particularly when investors are already hyper-attuned to software risk.
3) Microsoft is positioning more “expert-led” security services for 2026
Microsoft’s Partner Center announcements highlighted that the Microsoft Defender Experts suite is slated to be generally available starting Jan. 1, 2026, including a limited-time promo running through 2026. [9]
Why it matters: Microsoft’s security business is often discussed as an additional durable pillar alongside Azure and Microsoft 365. Product packaging and go-to-market changes can be incremental, but they’re part of the broader “platform + services” thesis investors underwrite.
Forecasts and analyst views: what Wall Street is signaling into 2026
The most market-moving “forecast” content circulating into Tuesday’s close wasn’t a new downgrade—it was the continuation of a bullish framing around Microsoft as an AI monetization front-runner.
- Wedbush’s Dan Ives reiterated an Outperform stance and a $625 price target, arguing Microsoft’s AI positioning (especially Azure + Copilot) supports meaningful upside into 2026. [10]
- A broader analyst snapshot has Microsoft heavily skewed toward Buy ratings, with average targets clustered around the low-$600s in several compilations. [11]
What investors should do with that: treat targets as scenario framing, not certainty. The market’s debate on MSFT is less about “does Microsoft win AI?” and more about how fast AI converts into durable, high-margin revenue relative to the bill for data centers and infrastructure.
The risk debate heating up: capex, accounting optics, and “priced for perfection”
Two investor concerns popped up repeatedly across today’s market commentary—and both are relevant to Microsoft’s valuation narrative.
1) Depreciation schedules are becoming an investor talking point
A Reuters commentary piece warned that big tech’s adjustments to depreciation schedules—extending “assumed useful lives” of certain assets amid surging capex—could become a source of investor angst heading into 2026. Reuters explicitly named Microsoft among the “Magnificent Seven” companies extending useful lives since 2020. [12]
Key takeaway: even if nothing is “wrong” operationally, markets can punish stocks if investors conclude reported profitability is being flattered by accounting assumptions. Reuters emphasized there was no indication of fraud, but noted the sensitivity given lofty valuations. [13]
2) “Overbuilding” AI infrastructure remains a live question
A Seeking Alpha analysis published Tuesday argued Microsoft is not immune to the risk of overbuilding in AI infrastructure, pointing to the scale of spending and the need for AI demand to stay strong enough to justify it. [14]
You don’t have to agree with that view to recognize it’s part of what traders will watch: every hint about Azure capacity, utilization, and margins can influence how investors handicap Microsoft’s next leg.
What to know before the stock market opens tomorrow (Wednesday, Dec. 24, 2025)
Wednesday is not a normal session. It’s a holiday-shortened trading day, and that changes how investors approach risk and execution.
1) Know the schedule: early close is real—and it affects volatility
- NYSE and Nasdaq are scheduled to close early at 1:00 p.m. ET on Dec. 24, 2025, and remain closed on Dec. 25 (Christmas Day). [15]
- Reuters also flagged the early close and the holiday-driven drop in trading volume. [16]
- Many market guides note the bond market closes early as well. [17]
Practical MSFT takeaway: on shortened sessions, liquidity can get patchier earlier in the day, spreads can widen, and the close can be more “flow-driven” than fundamental.
2) Watch the one big U.S. data point on the calendar: jobless claims
Market calendars point to Initial Jobless Claims (8:30 a.m. ET) on Wednesday, Dec. 24. [18]
Even if you’re trading Microsoft, this matters because MSFT often trades like a duration/growth proxy at the margin—sensitive to yields and rate expectations when macro data surprises.
3) Expect “headline risk” to hit harder in a thin tape
With markets closing early and then shutting for Christmas, late-breaking headlines can have an outsized effect—especially on mega-cap tech. Going into Wednesday, the most MSFT-relevant headline buckets are:
- AI infrastructure spending and returns-on-investment narratives (capex, utilization, margins) [19]
- Accounting/earnings quality chatter (depreciation assumptions) [20]
- Enterprise software reliability and security (patches, product rollouts) [21]
4) If you trade MSFT actively: execution matters more tomorrow
On a shortened session, consider:
- Using limit orders rather than market orders
- Being cautious with stop orders in thinner liquidity
- Watching closing-auction dynamics, since many participants adjust positions ahead of a holiday gap
Bottom line for MSFT heading into Wednesday’s open
Microsoft stock finished Dec. 23 with a small gain and a muted after-hours tape—suggesting the market is not reacting to a single company-specific bombshell, but instead continuing to weigh the 2026 setup: AI-led growth vs. AI-era costs, and how investors price mega-cap tech when rates, spending, and accounting optics all matter at once. [22]
With an early close on Dec. 24 and Christmas market closure on Dec. 25, the most important “before the bell” mindset is simple: liquidity will be thinner, and macro surprises can swing sentiment quickly—especially for a bellwether like MSFT. [23]
References
1. public.com, 2. www.investing.com, 3. public.com, 4. www.reuters.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.linkedin.com, 8. www.theregister.com, 9. learn.microsoft.com, 10. www.barrons.com, 11. www.investopedia.com, 12. www.reuters.com, 13. www.reuters.com, 14. seekingalpha.com, 15. www.nyse.com, 16. www.reuters.com, 17. finance.yahoo.com, 18. www.marketwatch.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.theregister.com, 22. public.com, 23. www.nyse.com
