Is microsoft a good long term investment? (2024)

Is microsoft a good long term investment?

Microsoft stock has a strong, unmistakable long-term uptrend over time. Therefore, it has proven to be a solid stock for tech investors to hold as an anchor stock. In addition, MSFT investors have benefited from the market's confidence in its resilient business model.

According to the algorithmic forecasts of Wallet Investor, MSFT stock could rise to $387 over the next 12 months and is a “good long-term (one-year) investment”. Although the service does not provide a Microsoft stock 10-year forecast, it predicts that MSFT could reach $676 in five years.

Evergreen and profitable company, Microsoft (NASDAQ:MSFT) is an ideal addition to your portfolio, and MSFT stock is the one to own and hold beyond 2022. The stock is trading below $300 for the past week and is much lower than the 52-week high of $349.

The stock is a good bet for investors looking for assets with strong growth drivers, solid pricing power, and earnings growth that can outpace inflation, analyst Keith Weiss said in a research note Tuesday. “Bottom line, Microsoft positions well against multiple secular growth trends,” he said.

AAPL stock has gained 6.4% in price over the past month, while MSFT returned 4%. Also, AAPL's 23.7% gain over the past six months is significantly higher than MSFT's 9.6% returns. Furthermore, in terms of past years' performance, AAPL is the clear winner with 44.9% gains versus MSFT's 31.4% returns.

Stock Price Forecast

The 38 analysts offering 12-month price forecasts for Microsoft Corp have a median target of 360.00, with a high estimate of 410.00 and a low estimate of 298.18. The median estimate represents a +41.52% increase from the last price of 254.38.

Microsoft investors can expect more upside

Microsoft's earnings have grown at an annual rate of 18% over the past five years. Looking ahead, analysts expect the company to clock an annual earnings growth rate of 17% for the next five years.

Microsoft is still Growing

According to our 26 analysts estimating growth rates up to 2024, Microsoft is expected to grow annual revenue to US$257.8b in the first half of 2024. This is a total growth of 39% over that period, or about 12.4% annually.

What should I invest in for 2022?

Summary. Few companies exemplify how long-term investing can help you retire rich as Apple, which is up, 2,127X over the last 35 years. The good news is that Apple is still one of the best companies on earth, and is expected to grow 14.5% over time, meaning it can make you rich over time.

Microsoft is slightly undervalued based on the P/E ratio, and is expected to keep innovation growth.

Historically, Apple stock has been a better buy after pullbacks. Therefore, the recent decline in share price could be seen as an opportunity for new investors to own shares at early December 2021 prices.

Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Microsoft has proved itself a safe and durable grower, and perhaps the best tech stock to own for older investors and those near retirement.

The Microsoft stock holds a buy signal from the short-term moving average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the stock giving a more negative forecast for the stock.

It has been a long time that Microsoft has announced the share split. Considering the present scenario, it is highly unlikely that any split will be announced in the near future.

Microsoft stock is not a buy right now. It needs to form a new base in the right market conditions before setting a potential buy point. Check out IBD's Big Picture column for the current market direction. In a negative sign, MSFT stock is trading below its 50-day moving average line.

How volatile is Microsoft stock?

MSFTVolatility Chart

Current Microsoft Corporation volatility is 36.09%.

Microsoft is one of the greatest stocks in history, delivering 1,140X inflation-adjusted returns since 1986. MSFT can still help you retire rich, and stay rich in retirement.

The site's Microsoft stock projection suggested the MSFT future price could reach $423.27 a year later in April 2024. It may then climb to $495.50 by the same point the following year in 2025 and then up to $567.68 by April 2026.

U.S. Treasury bonds are widely considered the safest investments on earth. Because the United States government has never defaulted on its debt, investors see U.S. Treasuries as highly secure investment vehicles. “Treasuries have become less attractive recently because of their low yields,” says Matthews.

For the Long Term

As the e-commerce industry still has plenty of growing to do, and as Amazon is an absolutely dominant force within the market, Caldwell believes AMZN stock remains a solid long-term investment.

Which stock gives highest return in 2021?

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 August 2011 would be worth $12,153.41, or a 1,115.34% gain, as of August 25, 2021.

Microsoft's Share Price Over Last 10 Years

If you had invested $100 in Microsoft you would have approximately $1,033.57 today.

Microsoft stock is not a buy right now. However, it soon could be. MSFT stock has been consolidating for the past 22 weeks with a buy point of 349.77, according to MarketSmith charts. In a negative sign, MSFT stock is trading below its 50-day moving average line.

Unsplit, Microsoft would be worth about $8,928 a share.

Microsoft Stock Split: No Split in Last 19 Years

It has been 19 years as of 14^th February 2022 for the last split.

Will MSFT split again?

Is Microsoft Stock Likely To Split In 2022? With the stock price hovering above $300 per share, it seems plausible to expect a stock split to be on the horizon. MSFT is already trading at a $2.3 trillion valuation, and may be looking to utilize any strategy it can to improve returns.

Historical daily share price chart and data for Microsoft since 1986 adjusted for splits. The latest closing stock price for Microsoft as of May 19, 2022 is 253.14. The all-time high Microsoft stock closing price was 343.11 on November 19, 2021.

The Microsoft IPO: Microsoft went public on March 13, 1986, with an IPO price of $21. Over 2.5 million shares were traded on the company's IPO day. Shares of Microsoft closed the day at $27.75. If you invested $1,000 in Microsoft at the IPO price of $21, you could have bought 47.6 shares.

Gates has sold almost 8 million shares of Microsoft (MSFT, Fortune 500), bringing down his total to roughly 330 million which puts him behind Microsoft's former CEO Steve Ballmer who owns 333 million shares. Gates owned 49% of Microsoft at its IPO in the year 1986, which made him an instant multi-millionaire.

Microsoft is slightly undervalued based on the P/E ratio, and is expected to keep innovation growth.

Summary. Few companies exemplify how long-term investing can help you retire rich as Apple, which is up, 2,127X over the last 35 years. The good news is that Apple is still one of the best companies on earth, and is expected to grow 14.5% over time, meaning it can make you rich over time.

If approved by shareholders in May, the split will go into effect June 6. Amazon closed Wednesday at $2,785 per share. If the stock split were to happen today, Amazon's stock would be worth $139 a share.

A. The offering price was $21.00 per share at the IPO on March 13, 1986.

Gates's personal stake in Microsoft, as high as 45% when he took it public in 1986, was down to 1.3% by 2019, according to securities filings, a stake that would currently be worth about $25 billion. Mr. Gates focused on his philanthropy after stepping down as CEO in 2000.