Microsoft is one of Wall Street’s most valuable companies, its market capitalization having surpassed the trillion-dollar mark by mid-2019. That milestone is only possible for Amazon and Apple. Microsoft stock was able to shine on the stock exchange after some difficult years, especially 2007-2013, and it has become one of best long-term investment options.

Microsoft stock: Microsoft history

Microsoft was founded by Bill Gates in 1975 and Paul Allen in 1976. The company focuses on the development of operating systems and software. Since then, Microsoft has expanded its business model to other technology areas like cloud computing, web services and artificial intelligence.

Some of the key Microsoft products are:

Windows operating systems, Office tools

Xbox video game console

Search engine by Bing

Explorer web browser

One Cloud is a cloud computing service

Microsoft not only has products that it developed, but also many acquisitions like the social network LinkedIn and Skype online calling software.

Satya Nagella is currently the Microsoft CEO, and he succeeded Bill Gates (1975-1999), Steve Ballmer(2000) and Steve Ballmer (2013). He brought new life to Microsoft by changing the business model away from being systems-centric and moving it towards services. This can be seen in the fact that he made the Office toolkit a subscription-based service and ended the Windows Phone system at 2019’s end, because it was not able to compete with both the iOS and Android platforms.

Microsoft stock price History: Microsoft stock Price History

Microsoft stock has seen strong growth over the past four years, with a 430% increase since 2014 and exceeding $200 per share. Microsoft’s market value surpassed $1 trillion in April 2019, surpassing that of Amazon and Apple.

Microsoft has long been considered a cyclical company. That is, it rises with the economy up and falls when it’s low — just like many other tech stocks.

Recent years have seen the company’s products diversify and become more than just a stock of technology. Microsoft stock, therefore, looks like a steady source of income, that can weather storms while still paying dividends throughout recessions.

Microsoft became a viable company in 2014 thanks to its business model transformation. It can now pay dividends, independent from tech stocks which often reinvest cash. other.

Microsoft Stock: Microsoft shares pay dividends

Technology corporations are not well-known for being able to trade in the stock markets. Tech stocks are often deemed to be high-growth. Some tech companies do not pay dividends. They prefer to use capital for projects with greater growth potential.

Microsoft stock pays a quarterly income without interruption since 2005. In recent years, the dividend payment has increased steadily to $0.56/share. Microsoft stock is expected in 2022 to pay a $0.62 dividend. This may not sound like much but it is an income source that grows continuously.

Microsoft’s quarterly payout grew by 537% between 2004-2020. It went from $0.08 per share to $0.51.

Microsoft stock is an excellent investment option because it pays out dividends regardless the business cycle.

Microsoft stock can also be considered long-term investment options for investors who want a steady stream income. The company pays a dividend yield of approximately 1%.

Microsoft stock dividend yield is down since December 2015. However, this is due to Microsoft stock price spike during this time.

Microsoft’s stock market price rises faster than dividends. This has an impact on operating margins. Investors can however not complain about the company’s health or its profits.

MSFT stock: Microsoft stock market price chart

What is Microsoft’s stock value? The current share price of Microsoft is $341.36, as at November 18, 2021. Below is a trading graph that illustrates the growth of Microsoft stock over the past eight years.

The Microsoft stock chart reveals a clear bullish track record since March 2009, when it fell to $14.85. In recent years, this trend has been accelerating.

Microsoft stock price reached $200 in July 2020. More than a decade later it was $300.

If we consider the growth of the stock after 2014, when Satya Naddella was appointed CEO, we can state that Microsoft’s share prices have increased by more than seven-fold. .

Microsoft stock price currently looks high for someone looking to enter the stock exchange for the first time. This is especially after the incredible recovery from the March 2020 fall caused by coronavirus. . Between then and November 20,21, the title grew by more than 60%.

Microsoft’s CFD market price hit a record high of $189 on February but then plummeted quickly to $134 in March.

Microsoft’s daily market chart, in particular, allows for a solid recovery by the stock exchange from the March 23rd lows.

But what does all this mean? Are you able to invest in Microsoft stock at this time? It is important to analyze the environment surrounding the company.

Microsoft ticker – Financial results

Microsoft is an old defender in technology. It is a well-known company that has experienced high growth over the years and is recognized as a leader in its market and one of largest companies worldwide.

It continues to record impressive financial performance every year and continues growing. This year is no exception. You can compare the key indicators for their financial year ending June 30, 2021 with those for the previous two decades in the table below.

	2021	2020	2019
Product Revenue	71,074M 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

The numbers speak for themselves when you look at the data. You can see an immediate increase year-overyear, the most recent year being especially impressive.

But if you look closer, it is clear that last year’s success was due to a 29% rise in services and other revenues compared to previous years. However, product sales declined by 4.5%.

Product revenue refers the revenue earned from the sale and subscription of operating system, hardware, or applications. Services and other income come mainly from the sales and subscriptions of cloud-based services such as Office 365.

This massive increase in service revenue is primarily due to a change of working conditions after the Covid-19 restrictions were imposed last year. Many companies now look to cloud-based computing services. To make it easier for employees to work at home.

This can be adjusted once employees return to the office. It is possible that we will also witness a new chapter in our working lives, where employees are able to work from anywhere they want. Revenues from Cloud-based Services could rise accordingly.

Should I invest in Microsoft 2023 shares?

If you’re looking to invest in stocks and you are interested in long-term trading or buying or selling, you shouldn’t rely only on signals from technical or fundamental analyses. A company’s actions are more important than its overall structure. This is why it is so important to evaluate their business model before investing in Microsoft stock.

STRENGTHS	Weaknesses
The company focuses on areas with high growth potential such as cloud, artificial Intelligence and other related technologies.	Any disruption can cause great concern in the tech industry.
Diversified business model with a leading position in software sector	Compete in high-growth industries with FAANG
Microsoft’s stock-market performance is balanced with positive results: high profitability; low levels of debt; and good cashflow management.	Sensitivity to rate increases in the short-term is increased if they are done at a faster rate than normal.
Microsoft escapes the legal constraint that is perpetuating so-called FAANGs – Facebook, Apple Amazon Netflix, Google and Amazon – in relation to user information or competition.