Microsoft is the most valued company on Wall Street, with a market capitalization exceeding the trillion-dollar mark in mid-2018. This is a milestone only Apple or Amazon can reach. Microsoft stock has emerged as one of the top long-term investments after several difficult years, especially between 2007 and 2013.
Microsoft stock: Microsoft history
Microsoft was established in 1975 by Bill Gates & Paul Allen. It specializes in operating systems, software, hardware, and other related technologies. The company has been expanding its business model in other areas of technology, such as cloud computing, web-based services and artificial intelligence, or video games.
The following are key Microsoft products
Windows operating system and Office Tools
Xbox video game console
Search engine for Bing
Explorer web browser
One Cloud Computing Service
Microsoft is not only a manufacturer of products, but also acquired major companies like LinkedIn and Skype for online calling.
Satya Naddella is the current Microsoft CEO. He succeeds Bill Gates (1975-1999), Steve Ballmer (2000-2013), and Steve Ballmer (202000-2013). He gave new life to Microsoft and changed its business model from one that is systems-centric towards one that is services-centric. It is obvious by the fact that he converted the Office toolkit into an online subscription service and abandoned the Windows Phone system completely at the close of 2019, because it couldn’t compete with the iOS, Android and other systems.
Microsoft stock price historical: Microsoft stock pricing history
Microsoft stock has enjoyed a strong growth period, surpassing $200 per share and a 430% rise in its value since 2014. Microsoft’s market cap reached $1 trillion as of April 30, 2019, an amount that only Amazon and Apple could reach at that time.
Microsoft was long considered a cyclical share, meaning it rises when the economy’s up and drops when it’s down, just like other listed tech stocks.
The company’s products have evolved over the years and they are now more than just a technology stock. Microsoft stock now looks like a stable source of income that can weather the storms and pay dividends consistently even during recessions.
Microsoft transformed its business model in 2014. It is now a liquid corporation that can pay dividends to shareholders. This is distinct from technology stocks, which often reinvest money. other.
Microsoft Stock: Microsoft shares pay dividends
Technology companies aren’t known for their stock market quality. Tech stocks are considered to be fast-growing by the financial community. Tech corporations may not pay dividends, as they prefer capital to be used for new projects with higher growth potential.
Microsoft stock has paid a quarterly dividend every quarter since 2005. Current dividend payment stands at $0.56/share. Microsoft stock is expected pay $0.62 per share in 2022. It may not seem like much but it’s an ever-growing source of income.
Microsoft’s quarterly dividend has increased from $0.08 a $0.51 to 2021. That is an increase of 537% in 15 years.
Microsoft stock is popular because of its ability pay dividends, regardless of business cycles.
Microsoft stock qualifies for long-term investors seeking steady income. The company’s dividend yield is about 1%.
Although the dividend yield of Microsoft stock has been declining since December 2015, this is mainly due to Microsoft’s stock price rise during this period.
Microsoft’s stock prices rising faster than dividends has an immediate effect on operating profits, but investors can’t complain at the company’s financial health and its profits.
MSFT stock chart: Microsoft stock price chart
What is Microsoft’s stock price? The current share price is $341.36 (closed Nov 18, 2021). Below you will find a trading chart which shows how Microsoft stock has changed over the years from 2008 to 2021.
The Microsoft stock charts show a clear bullish past since March 2009, when the stock reached an all time low of $14.85. The trend has increased in recent years.
Microsoft’s stock prices surpassed $200 in July 2020. This was more than a decade ago. In October 2021, it was $300.
When we look at the value of the stock from 2014, when Satya was appointed the new CEO, it is easy to see that its share price has more than seven times multiplied. .
Microsoft stock prices are high for new investors looking to invest in the stock market. This is particularly true after the dramatic recovery from March 2020’s slide due to the coronavirus pandemic. . Between November 2021 and then, the title appreciated over 60%.
Microsoft’s CFD price plummeted to $189 in February before rebounding quickly to $134 after the March crash.
Microsoft’s daily chart is a good example of a strong recovery in the stock markets from the March 23rd, 2020 lows.
But what does this all mean? Is it a good moment to purchase Microsoft stock? It is crucial to examine what surrounds the company.
Microsoft ticker Financial results
Microsoft is one of the most trusted technology companies. Microsoft has enjoyed a period with high growth that has seen it become a market leader as well as one of the biggest companies in the world.
It continues to deliver impressive financial performance year after année and continues its growth. This year has been no different. Below is a table that shows some key indicators of the company’s financial results, as well as the comparison to the results in the previous two fiscal years.
2021 | 2020 | 2019 | |
Product Revenue | 71,074MÂ USD | 68,041M USD | 66,069M USD |
Services and other income | 91,014M USD | 74,974M USD | 59,774M USD |
Total Revenue | 168,088M USD | 143,015M USD | 125,843M USD |
Net Income | 61,271M USD | 44,281M USD | 39,240M USD |
Earnings per Share (EPS) | 8,12 USD | 5,82 USD | 5,11 USD |
These numbers speak for themselves, as can be seen from the above data. The increase in year over year can be seen immediately, with the most recent years being the most impressive.
We can see that there was a 29% increase of services and other revenue last year. This is a significant factor in the company’s success. The sales of products increased by 4.5%, however.
Product revenue is revenue that comes from the sales of operating systems and hardware as well as applications. Services and other income can be generated mainly through the sale or subscription of cloud-based software such as Office 365, Azure and others.
This large increase in service revenue is mostly due to the change in working conditions caused by Covid-19 restrictions. Many companies are looking to cloud-based solutions. to make it easier and more convenient for their employees to work remotely.
This can be adjusted when employees return to work. But, this could also signal the start of a new chapter for working life. This is where employees have more freedom over where they work. In that case, revenue from Cloud services could increase accordingly.
Should I buy Microsoft shares in 2023?
You should not only rely on fundamental or technical analysis when you invest in the stock exchange. You should consider an action more important than the company itself. Therefore, it is crucial to look at the business model of any company before purchasing Microsoft stock.
STRENGTHS | Weaknesses |
---|---|
The company is active in several areas of great growth potential, including cloud, artificial intelligence. | Tech sector is sensitive to disruptions. |
Diversified business model and leading position within the software sector | Compete with FAANG for industries with high potential growth. |
Microsoft’s performance on the stock exchange is positive. It has high profitability, low debt, and good cash flow management. | A rate increase at a faster than usual pace can cause short-term sensitivity. |
Microsoft escapes legal pressure that perpetuates the so-called FAANGs, Facebook, Apple Amazon, Netflix, Netflix, Google, and Amazon – in relation user data or to the competition. |