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Here's How Much You'd Have If You Invested $1000 in Microsoft a Decade Ago
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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 factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Microsoft (MSFT - Free Report) 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 also designs and sells PCs, tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories. Moreover, through Azure, it offers cloud-based solutions that provide customers with software, services, platforms and content.
Microsoft reported revenues of $143.02 billion in fiscal 2020. The company reports operations under three segments: Productivity & Business Processes, Intelligent Cloud and More Personal Computing.
Productivity & Business Processes accounted for 32.5% of fiscal 2020 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 33.8% of fiscal 2020 revenues.
On October 25, 2018, the company completed the acquisition of GitHub, which provides a collaboration platform and code hosting service for developers, for $7.5 billion.
More Personal Computing represented 33.7% of fiscal 2020 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
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Microsoft a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in June 2011 would be worth $10,882.90, or a 988.29% gain, as of June 16, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 235.59% and the price of gold increased 16.84% over the same time frame in comparison.
Going forward, analysts are expecting more upside for MSFT.
Microsoft is benefitting from the adoption of Azure services amid accelerated global digital transformation. Teams’ user growth is gaining from continuation of remote work, online learning and telehealth trends. Moreover, solid uptake of new Xbox consoles is aiding the top line expansion. The company is also witnessing growth in user base of its different applications including Microsoft 365 suite and Dynamics. Shares have outperformed the industry in the year-to-date period. A recovering ad and job market scenario are expected to cushion LinkedIn and Search revenues. However, Microsoft expects Surface as well as Xbox Content and services revenue to decline in the fiscal fourth quarter owing to tough year over year comparison. Increasing spend on Azure enhancements amid stiff competition in the cloud space is likely to weigh on margins.
The stock has jumped 6.29% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2021; the consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Microsoft a Decade Ago
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 factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Microsoft (MSFT - Free Report) 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 also designs and sells PCs, tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories. Moreover, through Azure, it offers cloud-based solutions that provide customers with software, services, platforms and content.
Microsoft reported revenues of $143.02 billion in fiscal 2020. The company reports operations under three segments: Productivity & Business Processes, Intelligent Cloud and More Personal Computing.
Productivity & Business Processes accounted for 32.5% of fiscal 2020 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 33.8% of fiscal 2020 revenues.
On October 25, 2018, the company completed the acquisition of GitHub, which provides a collaboration platform and code hosting service for developers, for $7.5 billion.
More Personal Computing represented 33.7% of fiscal 2020 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
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Microsoft a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in June 2011 would be worth $10,882.90, or a 988.29% gain, as of June 16, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 235.59% and the price of gold increased 16.84% over the same time frame in comparison.
Going forward, analysts are expecting more upside for MSFT.
Microsoft is benefitting from the adoption of Azure services amid accelerated global digital transformation. Teams’ user growth is gaining from continuation of remote work, online learning and telehealth trends. Moreover, solid uptake of new Xbox consoles is aiding the top line expansion. The company is also witnessing growth in user base of its different applications including Microsoft 365 suite and Dynamics. Shares have outperformed the industry in the year-to-date period. A recovering ad and job market scenario are expected to cushion LinkedIn and Search revenues. However, Microsoft expects Surface as well as Xbox Content and services revenue to decline in the fiscal fourth quarter owing to tough year over year comparison. Increasing spend on Azure enhancements amid stiff competition in the cloud space is likely to weigh on margins.
The stock has jumped 6.29% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2021; the consensus estimate has moved up as well.