Microsoft is one the most valuable Wall Street companies with a market cap exceeding the trillion dollar mark in mid-2019. This milestone can only be achieved by Amazon and Apple. Microsoft stock rose after a few difficult years, particularly from 2007 to 2013, and has since become one of the most reliable long-term investments.

Microsoft stock: The history

Microsoft was founded in 1975 by Bill Gates, Paul Allen and focuses primarily on operating systems, software, and hardware. Microsoft has since expanded its business model to include other technologies such as cloud computing and web services.

These are key Microsoft products:

Windows operating system and Office tools

Xbox video game console

Search engine Bing

Explorer web browser

One Cloud, cloud computing service

Microsoft has acquired many companies, including the social network LinkedIn and online calling software Skype.

Satya Nadella, the current Microsoft CEO from 2014 to now, succeeds Bill Gates (1975-1999), and Steve Ballmer (2000-2013). Satya Nadella breathed new life in Microsoft and transformed the business model of Microsoft from being systems-centric to one that was services-centric. He made it clear by switching the Office toolkit to a subscription service. At the end of 2019, he completely abandoned Windows Phone, as it was unable to compete with the iOS or Android systems.

Microsoft stock price history: Microsoft stock prices history

Microsoft stock has experienced strong growth since 2014. It saw a 430% increase in value and passed the $200 threshold. Microsoft’s market capitalization reached $1 trillion on April 30, 2019, surpassing the threshold of $200 per share, a figure that was only reached by Amazon and Apple.

Microsoft has been a cyclical stock for a long time. It rises when there’s an upturn in the economy, and falls when there’s a downturn. This is similar to other tech stocks.

In recent years, however, Microsoft stock has become more diverse and is not just a stock in technology. Microsoft stock is now a reliable source of income that can weather any storm and still pays dividends, even in recessions.

Microsoft’s 2014 business model transformation made it a liquid company, able to pay out dividends to its investors. This is separate from tech stocks that often reinvest their cash. other.

Microsoft Stock: Microsoft shares pay dividends

Technology corporations aren’t so well-known for their performance in the stock exchange. Tech stocks are rated as high-growth by the financial community. Many tech companies don’t pay dividends as they prefer to invest capital in new projects that have greater growth potential.

Microsoft stock has consistently paid a quarterly dividend since 2005. $0.56 per share is the current dividend payout. Microsoft stock will provide a $0.62 dividend in 2022. While it may not seem like much, it is a consistent source of revenue that is rising.

From 2004 and 2021, Microsoft’s quarterly dividend increased from $0.08 to $0.51. During the previous 15 years, this has increased by 537 percent.

Microsoft stock is a well-liked investment option since it always pays dividends, regardless of the state of the economy.

For long-term investors searching for dependable income, Microsoft stock is a smart option. The business has an about 1% dividend yield.

Due to Microsoft’s stock market increase since December 2015, the dividend yield on its shares has decreased.

Operating margins are impacted when Microsoft’s stock price rises more quickly than dividends. Investors shouldn’t be shocked, however, by the company’s profitability and overall health.

MSFT stock: A graph showing Microsoft stock prices

What is the current market value of Microsoft? A share of Microsoft stock is now valued at $341.36. (closed November 18, 2002). The Microsoft stock price development from November 2008 to November 2021 is seen in the graph below.

Since March 2009, when it hit an all-time low of $14.85, the Microsoft stock chart has been clearly in a positive trend.

This is a trend that has been increasing in recent years.

Microsoft’s stock price was $200 in July 2020, ten years later. It was $300 in October 2021, more than a decade after its peak.

We can see that Microsoft’s share price has increased sevenfold since 2014 when Satya Nadella became the new CEO. .

For a novice investor who wants to get into the stock market, the current Microsoft stock price is high. This is especially true after the remarkable recovery from the March 2020 slide that was caused by the coronavirus panademic. . The title appreciated by more than 60% between then and November 2021.

After reaching a peak of $189 in February, and then falling quickly to $134 during the March crash, Microsoft’s CFD prices recovered quickly. On November 19, it was at its highest ever, exceeding $340.

Microsoft’s daily charts allow for a solid recovery of the stock market, especially from March 23rd 2020 lows.

What does this mean? This is a good time for Microsoft stock to be bought? It is important that you examine the surrounding environment of the company.

Microsoft ticker Financial results

Microsoft is a part of the old guard when it comes to technology. It has experienced a period of rapid growth, and is now a market leader and the largest company in the world.

It continues to show impressive financial results year after year, and continues to grow. This year was no exception. The following table shows key indicators of their financial results as compared to the results from the previous two years.

The data is clear and convincing. It is easy to see an increase in year-over year, with the most recent being especially impressive.

If we look closely, however, we can see that the success of last year was due in large part to a 29% increase in services revenue. However, product sales increased only 4.5%.

Product revenue is the revenue from the sale or subscription of operating systems, hardware and applications. Services and other income are primarily generated by the subscription and sale of cloud-based products like Office 365 or Azure.

The huge increase in service revenue is due to changes in working conditions resulting from the Covid-19 restrictions last year. Many companies are now looking at cloud-based services. to make it easier to work remotely for employees.

As employees return to work, this increase can be adjusted. We could also be witnessing a new chapter of working life. Employees will have more control over where they work and revenue from Cloud-based services may grow accordingly.

Should I purchase shares of Microsoft 2023

If you are looking to invest in stock markets and want to long-term buy or sell, or swing trade, don’t rely on technical or fundamental analysis. Consider an action as more important than any company’s other actions. It is important to examine their business model before you buy Microsoft stock.