Yahoo Finance Here's How Much a $1000 Investment in Microsoft Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Microsoft (MSFT) ten years ago? It may not have been easy to hold on to MSFT for all that time, but if you did, how much would your investment be worth today?
Microsoft's Business In-Depth
With that in mind, let's take a look at Microsoft's main business drivers.
Redmond, WA-based Microsoft Corporation is one of the largest broad-based technology providers in the world. The company dominates the PC software market with more than 80% of the market share for operating systems.
The company’s Microsoft 365 application suite is one of the most popular productivity software globally. It is also now one of the two public cloud providers that can deliver a wide variety of infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) solutions at scale.
Microsoft’s products include operating systems, cross-device productivity applications, server applications, business solution applications, desktop and server management tools, software development tools and video games.
The company designs and sells PCs, tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories. Through Azure, it offers cloud-based solutions that provide customers with software, services, platforms and content.
Microsoft reported revenues of $198.2 billion in fiscal 2022. The company reports operations under three segments: Productivity & Business Processes, Intelligent Cloud and More Personal Computing.
Productivity & Business Processes accounted for 31.1% of fiscal 2022 revenues. The segment offers productivity and collaboration tools and services including Office 365, Dynamics business solutions, Teams, Relationship Sales solution, Power Platform and LinkedIn.
Intelligent Cloud, which include Azure cloud services, contributed to 37.9% of fiscal 2022 revenues.
On Mar 4, 2022, the company completed the acquisition of Nuance Communications, Inc. for $18.8 billion. Nuance is a cloud and artificial intelligence (AI) software provider with healthcare and enterprise AI experience.
More Personal Computing represented 31% of fiscal 2022 revenues. The segment comprises mainly the Windows, Gaming (Xbox hardware and Xbox software and services), Devices (Surface, PC accessories, and other intelligent devices) and Search (Bing and Microsoft Advertising) businesses.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Microsoft, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in June 2013 would be worth $9,659, or a gain of 865.90%, as of June 6, 2023, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 165.63% and the price of gold went up 33.41% over the same time frame.
Analysts are anticipating more upside for MSFT.
Microsoft’s fiscal third-quarter results benefited from strong Intelligent Cloud and Productivity and Business Processes revenues. Intelligent Cloud revenues were driven by growth in Azure and other cloud services. Productivity and Business Processes revenues increased due to strong adoption of Office 365 Commercial solutions. Continued momentum in the small and medium businesses and frontline worker offerings, as well as gain in revenue per user drove top-line growth. However, More Personal Computing revenues decreased due to weak Windows and Devices businesses. Steady performance in Talent Solutions aided LinkedIn revenues. However, declining gaming revenues has been a headwind. Increasing spend on Azure enhancements amid stiff competition in the cloud space remains a concern. Shares have outperformed industry year to date.
The stock has jumped 8.84% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2023; the consensus estimate has moved up as well.
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Microsoft Corporation (MSFT) : Free Stock Analysis Report
