It stands as one of the most powerful companies in the tech industry, with a market cap that rivals those of Amazon and Google. Since Gates had begun selling shares and offering stock options to prospective employees in order to entice top talent, though, Microsoft President and Chief Operating Officer Jon A. Shirley projected that, by 1987, enough people would own Microsoft stock that the company would be forced to register with the SEC. Inflation and rising interest rates are hurting consumers' spending power right now, so parts of Microsoft's business might continue to deliver sluggish growth in the short term. Those 47.6 shares of Microsoft have become 13,708.80 shares over the course of 35 years. Gates finally acquiesced to the idea of an initial public offering because the IPO would create a much wider, more liquid market for the company's shares. Today, that discovery is still the heart of the Zacks Rank. 38. What is the real cost of the data breaches? The $1,000 investment has now turned into $3,683,965 based on Microsofts current share price of $268.73. Shares of the company have outperformed the industry in the year-to-date period. In the late 90s, the company faced antitrust charges from the U.S. Department of Justice and, in the early 2000s, it released a string of unpopular products, including the Zune music player, Windows Vista operating system and Surface tablet. That includes price appreciation and dividends. Sign up for our new newsletter! 12. The company dominates the PC software market with more than 80% of the market share for operating systems.The companys Microsoft 365 application suite is one of the most popular productivity software globally. But it gets . 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. Don't miss: If you invested $1,000 in Apple at its IPO, here's how much money you'd have now, Get Make It newsletters delivered to your inbox, Learn more about the world of CNBC Make It, 2023 CNBC LLC. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved. Amazon went public on May 15, 1997, and the IPO price was $18.00, or $0.075 adjusted for the stocks splits that occurred on June 2, 1998 (2-for-1 split), January 5, 1999 (3-for-1 split), and September 1, 1999 (2-for-1 split), and June 3, 2022 (20-for-1 split). This means if you had purchased one share at the IPO and held the stock over the years, you would own 288 shares today. Zacks->. Its success was cemented well before its IPO, back in the very early days after Bill Gates founded the company in 1975. Microsoft waited 11 years before going public, primarily because Gates wanted to retain as much control of the company as possible. Today, Microsoft is a dominant player in cloud computing and MSFT's stock price proves it. Those are impressive growth rates for such a large company. The Microsoft IPO: Microsoft went public on March 13, 1986, with an IPO price of $21. Post-IPO, Microsoft continued to dominate the software industry. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. You can use this Historical Investment Calculator to compare investment returns for multiple asset classes. In those early years, Microsoft's future success was all but guaranteed, based on its growing relationship with Intel and IBM. Zacks Investment Research. Copy and paste multiple symbols separated by spaces. The major indexes made modest moves ahead of earnings from Microsoft, Alphabet and Meta Platforms. How much will $1000 be worth in 20 years? Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Use our investment calculator below to determine the profit or loss on any stock purchase. What was the price of Apple stock in 1985? 31. When Satya Nadella took over as CEO in 2014, he began a major turnaround at the software company. 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. During its early years, the company was heavily focused on software for personal computers, such as its Windows operating system and Microsoft Word. It stands as one of the most powerful companies in the tech industry, with a market cap that rivals those of Amazon and Google . That's a compound annual return of about 25% per year, or a cumulative return of nearly 211,000%. For most investors, how much a stock's price changes over time is important. The calculator will compare nominal returns or inflation-adjusted returns. This represents a return of 42,559.67% over the last 21+ years. Historical Investment Calculator | AccurateCalculators.com How rich would I be if I invested in Amazon? It's important to remember that the stock market can be fickle, and there's no foolproof way to predict how it may behave in the future. The latest price is $292.27. That gain comes as shares are up over 600% since Nadella becamethe third CEO in Microsoft history. Shares of Microsoft closed the day at $27.75. The deals helped boost the company's user network and emphasize the new direction Microsoft has taken in recent years. 24. 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. Microsoft's stock prices as of November 19, 2018, at 1:02 p.m. Based on a price of $149.31 for Apple shares at the time of writing, the $1,000 investment would now be worth $425,596.59. Currently, Apple has a market capitalization of $2.84 trillion. Both Gates and Allen immediately became multi-millionaires. What would $1000 invested in Microsoft be worth today? The Facebook parent's quarterly results overshadowed a worse-than-expected reading on Q1 gross domestic product. Does Bill Gates still own Microsoft stock? With an average price target of $306.97, industry analysts give Microsoft stock implied upside of about 10% in the next 12 months or so. Subscribe to CNBC Make It on YouTube ! Had you invested $1,000 in Microsoft at its IPO, you would have acquired 47 shares at $21 per share. 1. We'll let a bull Stifel analyst Brad Reback, who rates MSFT at Buy summarize the investment thesis on Microsoft shares: Microsoft has refocused the company around Azure and Office 365, which we view as several large, multi-year secular growth engines that should help drive mid- to high-single-digit Productivity and Business Process growth and low-double-digit Intelligent Cloud growth in coming years. Gates earned $1.6 million off the shares he sold and put a market value of $350 million on the 45 percent stake he retained, Fortune reports, making the 30-year-old one of the richest people in the country. For Microsoft, if you bought shares a decade ago, you're likely feeling really good about your investment today. A $5,000 investment would have purchased 238 shares at the IPO price. Gates has a lot of his financial investments held by a family office known as Cascade Investments. The government is concerned it would concentrate too much market power in the hands of Microsoft, because the company could theoretically reserve top games for the Xbox platform while locking out its competitors. How much would Bill Gates be worth if he didn't sell his shares? Microsoft (MSFT -0.55%) is well known for its Windows and Office software. When IBM selected Intel's chip design to be used in its groundbreaking 5150 PC in 1981, Microsoft's relationship with these two tech companies was cemented. A $5,000 investment would have purchased 238 shares at the IPO price. According to the current predictions, it should be priced at $657 in mid-2027 and then $706 by year-end. But after 20 years of this, the account would be worth $118,874. On the other hand, the value of the market index has grown by about 52% since 2018 and increased by about 156% since 2013. *Average returns of all recommendations since inception. Microsoft is benefiting from momentum in Azure, impressive Teams user growth triggered by coronavirus-led digital transformation, work-from-home, online learning wave and tele healthcare trends. If you had invested $1,000 into Microsoft five years ago, your investment would have more than tripled to $3,248 as of April 26, according to CNBC's calculations. Additionally, Microsoft reported earnings per share of $2.45, which surpassed the $2.23 analysts expected. How much would I have if I invested $1000 in Amazon? The Motley Fool recommends Intel and recommends the following options: long January 2020 $200 calls on IBM, short January 2020 $200 puts on IBM, long January 2021 $85 calls on Microsoft, short January 2020 $155 calls on IBM, and short January 2020 $50 calls on Intel. On the heels of the release of Windows 2.0 in 1987, it became the largest software company in the world by sales. Daily pricing data for Microsoft dates back to 3/13/1986, and may be incomplete. Sure, there have been some bumps along the way, with the company's growth taking a breather in certain years like 2009 (during the financial crisis), but the chart below shows a very clear trajectory. The dividends you would be earning every year are just as awesome. Here's exactly how much those investors have been rewarded for their patience. Shares of Microsoft went through a series of stock splits that included 2:1 stock splits in 1987 and 1990. Given Microsoft continues to pay a quarterly dividend of $0.68 per share, you would still be collecting a cool $36,817 each year, or 36 times your initial $1,000 outlay. The closing price for Microsoft (MSFT) in 1992 was $1.68, on December 31, 1992. How much will Microsoft stock be worth in 5 years? 23. One of its most successful releases came in the in the mid-90s with the introduction of Windows 95. ET. With that in mind, let's take a look at Microsoft's main business drivers. Microsoft shares split 2 . He died in October 2018 at age 65 from complications of non-Hodgkin's lymphoma. Click to enlarge, Microsoft's success came long before its IPO. Dismal guidance from logistics giant UPS and dreary deposit data from regional lender First Republic kept a lid on the major indexes Tuesday. It operates in so many diverse, transformative industries serving both consumers and businesses that the stock likely remains a safe bet over the next decade and beyond. As you can see in the above chart, if you had invested $1,000 in MSFT stock in late April 2003 and sold at its height in November 2021, you would have grossed more than $21,000. How many times has Microsoft stock split since 1986? The deals helped boost the company's user network and emphasize the new direction Microsoft has taken in recent years. Gates earned $1.6 million off the shares he sold and put a market value of $350 million on the 45 percent stake he retained, Fortune reports, making the 30-year-old one of the richest people in the country. Does Bill Gates still own Microsoft stock? Buying $100 In AAPL: If an investor had bought $100 of AAPL stock 20 years ago, it would be worth $41,002.74 today based on a price of $173.98 for AAPL at the time of writing. And there is still upside for the long term, especially as Microsoft's Azure cloud business continues to outpace the competition. A $1,000 investment in Microsoft on the . Throughout the day, just over 3 million shares were sold. How rich would I be if I invested in Amazon? advertisement. Solid uptake of new Xbox consoles is aiding the gaming segment performance. Invest better with The Motley Fool. afficher des publicits et des contenus personnaliss en fonction de vos profils de centres dintrt; mesurer lefficacit des publicits et contenus personnaliss; et. Microsoft also expanded its reach through the acquisitions of professional networking site LinkedIn in 2016 and code-sharing service GitHub in 2018. Vous pouvez modifier vos choix tout moment en cliquant sur le lien Tableau de bord sur la vie prive prsent sur nos sites et dans nos applications. While the major indexes failed to make big moves today, consumer staples giant Procter & Gamble popped after earnings. 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? That system became MS-DOS, one of Microsoft's most profitable products ever. Since then, Microsoft has begun to incorporate AI technology, dubbed "Copilot," into some of its well-known products including Word, PowerPoint and Excel. Indeed, Microsoft stock has been so remunerative since Nadella took over that long-term investors might not even notice that dud decade-plus following the tech bust. 2 Numbers Microsoft Investors Have a Right to Know, The Brains Behind AI: Why Microsoft and Alphabet Stocks Are Smart Choices for Artificial Intelligence Investors, The Wisdom of Time: Long-Term Investment Ideas for Savvy Investors, 1 Green Flag and 1 Red Flag for Microsoft's Future, 3 Top AI Stocks to Buy Right Now for the Coming Bull Market, Why I Refuse to Chase the Maximum Social Security Benefit, U.S. Money Supply Is Doing Something It Hasn't Done in 90 Years, and It May Signal a Big Move for Stocks, Social Security Cuts May Be Coming. Microsoft has been a phenomenal growth story. On the More Personal Computing front, while we remain cautious on the Windows franchise, we think areas such as Bing, Surface, and Xbox are gaining scale. It was up 15.6% for the year. The stock has jumped 7.52% over the past four weeks. Considering the present scenario, it is highly unlikely that any split will be announced in the near future. He retained that title for years. To get started, many experts recommend investing in low cost index funds that track market indices, such as the S&P 500. 19. What if you'd invested in Microsoft (MSFT) ten years ago? Bill Gates still owns more than 1% of Microsoft's shares, worth around twenty billion dollars. If You Do This, You Won't Have to Worry About Them, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, early signs that those headwinds are easing, Copyright, Trademark and Patent Information. 1 tip for being successful in your career, 3 of Warren Buffett's investing mistakesand what you can learn from them, past returns do not predict future results, bonded over their mutual love of computer science, so profitable that it didn't need outside money, Seattle Post-Intelligencer reported at the time, became the largest software company in the world, sold an astounding 40 million copies in its first year, sold 1.5 million units in less than two months. Here's How Much a $1000 Investment in Microsoft Made 10 Years - Nasdaq How much would Bill Gates be worth if he didn't sell his shares? 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If you had invested $1,000 into Microsoft five . 2 Numbers Microsoft Investors Have a Right to Know, The Brains Behind AI: Why Microsoft and Alphabet Stocks Are Smart Choices for Artificial Intelligence Investors, The Wisdom of Time: Long-Term Investment Ideas for Savvy Investors, 1 Green Flag and 1 Red Flag for Microsoft's Future, 3 Top AI Stocks to Buy Right Now for the Coming Bull Market, Why I Refuse to Chase the Maximum Social Security Benefit, U.S. Money Supply Is Doing Something It Hasn't Done in 90 Years, and It May Signal a Big Move for Stocks, Social Security Cuts May Be Coming. If you had invested $1,000 into Microsoft a year ago, your investment would be worth about $1,103 as of April 26, according to CNBC's calculations. Click Here to Get His Next Trade! The major indexes finished the week higher despite Amazon's warning on cloud growth and mixed inflation data. According to our calculations, a $1000 investment made in April 2011 would be worth . Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Redmond, WA-based Microsoft Corporation is one of the largest broad-based technology providers in the world. Microsoft waited 11 years before going public, primarily because Gates wanted to retain as much control of the company as possible. How much money would you have if you invested in Microsoft in 1990? Buying $100 In AMZN: If an investor had bought $100 of AMZN stock 10 years ago, it would be worth $1,627.44 today based on a price of $3065.53 for AMZN at the time of writing. Recovery in ad and job market boosted LinkedIn and Search revenues. A $1,000 investment in Microsoft on the day of its initial public offering, or IPO, on March 13, 1986, would be worth more than $1.6 million today, according to CNBC calculations. 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. Through Azure, it offers cloud-based solutions that provide customers with software, services, platforms and content.Microsoft reported revenues of $168.1 billion in fiscal 2021. By 1978, the company's year-end sales were over $1 million. Gates ran Microsoft until 2000, when he stepped down as CEO in order to focus on philanthropy. You would have made a total . By fiscal 2022 (ended June 30), that figure has grown by 1,000 times to $198 billion. Dan Burrows is Kiplinger's senior investing writer, having joined the august publication full time in 2016. All Rights Reserved. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. What is the difference between capital formation and investment? Youre invited to check out Zacks Marijuana Moneymakers: An Investors Guide. Today, Download Marijuana Moneymakers FREE >>, Microsoft Corporation (MSFT): Free Stock Analysis Report. How much would I have if I invested $1000 in Microsoft in 1986? (2023) Here's How Much You'd Have If You Invested $1000 in Microsoft a Decade Given Microsoft now trades at $238.73 per share, that translates to a return of 327,401%. Microsoft announced in January a multibillion-dollar investment in OpenAI, the artificial intelligence lab that created ChatGPT. Pour en savoir plus sur la faon dont nous utilisons vos donnes personnelles, veuillez consulter notre politique relative la vie prive et notre politique en matire de cookies. Not enough to knock anybody's socks off. In dollar terms, that $1,000 investment in 1986 would be worth a whopping $3.23 million today. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. The Motley Fool has positions in and recommends Activision Blizzard and Microsoft. He has written for The Wall Street Journal, Bloomberg, Consumer Reports, Senior Executive and Boston magazine, and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among other publications. The momentum continued on Thursday, with Microsoft shares setting a 52-week high. How long does it take to discover a data breach? But it gets better, because Microsoft has paid a dividend since 2003 -- and assuming you never sold a single share along the way, you'd have also received $341,513 in dividends. Microsoft stock has been surging to new highs lately and is up 52% year to date. Perhaps most importantly, Wall Street remains confident that Microsoft stock will continue to beat the market by wide margins going forward. A Division of NBC Universal, Ramit Sethi: Avoid these 3 toxic money beliefs to build wealth, How much you'd have if you invested $1,000 in the S&P 500 a decade ago, How to invest in 'extremely disruptive' AI tech, Here's how much money you'd have if you invested $1,000 in Costco 10 years ago, How much money you'd have if you invested $1,000 in Walmart 10 years ago, Here's how much money you'd have if you invested $1,000 in Nike 10 years ago. Microsoft Investor Relations - Investment Calculator And while his wealth is an extreme example, if you had bet on Microsoft in its early days in the mid-1980s, your gamble would have paid off big time, too. If youre looking for big gains, there couldnt be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027. Investment Date Original Shares Original Value Current Shares Current Value % Return Split Adjustment Current price; Mar 13, 1990: 100.00: 41421.62%: 143.99998 Microsoft sold an astounding 40 million copies in its first year. What was the price of Microsoft stock in 1999? Although the dot-com days of the 1990s minted many a "Microsoft millionaire," the aftermath of the tech bust led MSFT stock to trade mostly sideways for more than a decade. Overall, we believe strong commercial cloud revenue and gross margin growth and expense discipline should lead to accelerating operating profit and free cash flow generation in coming quarters. The S&P 500 rose 280.96% and the price of gold increased -2.15% over the same time frame in comparison. On the other hand, the Street's lowest price target at $212 a share gives Microsoft stock implied downside of about 25% in the next year or so. Learn More. What's the significance of 1986? Originally, only 2.5 million were offered, but the number was raised to meet demand. Over 2.5 million shares were traded on the companys IPO day. To read this article on Zacks.com click here. *Average returns of all recommendations since inception. Subscribe to CNBC Make It on YouTube! Solid uptake of new Xbox gaming consoles and Xbox Game Pass drove the top-line growth. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. Let's look at how much a $5,000 investment would be worth today if you had bought the stock at the initial public offering (IPO) price. The latest price is $283.65. 37. That includes price appreciation and dividends. Only Apple (AAPL (opens in new tab)) generated more wealth for shareholders over those three decades, making MSFT one of the very best stocks of the past 30 years, per Bessembinder's findings, which account for cash flows in and out of the business and other adjustments. On March 13, 1986, Microsoft set the IPO at $21.00 per share. How long can you stay in Aruba If you own property? How much would I have if I invested $1000 in Microsoft in 1986? Apple went public on December 12, 1980 at $22.00 per share. In October, the U.S. Department of Defense awarded a $10 billion contract to Microsoft, which is a huge win for Azure as it continues to chip away at the lead of Amazon Web Services in the cloud market. If you had invested in Microsoft ten years ago, you're probably feeling pretty good about your investment today. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange and hosted a weekly video segment on equities. Between January 1990 and December 2020, shares in Microsoft, which joined the Dow in 1999 at the height of the dot-com boom, generated a total return of 57,730%. Shares of Microsoft went through a series of stock splits that included 2:1 stock splits in 1987 and 1990. Those splits were followed by 3:2 stock splits in 1991 and 1992. What was the price of Microsoft stock in 1992? Those are just a few of Microsoft's most recognized brands. Microsofts performance is driven by strength in its Azure cloud platform amid accelerated global digital transformation. Visit our corporate site. Microsoft stock has lost almost $500 billion in value since its all-time high, but bulls say it's only a matter of time before it reclaims its heights. The latest price is $292.27. 9. The Motley Fool owns shares of and recommends Amazon and Microsoft. 25. Si vous souhaitez personnaliser vos choix, cliquez sur Grer les paramtres de confidentialit. Since Nadella took over, Microsoft's share price has nearly tripled. It was up 67.3% for the year. Over the past four quarters, Microsoft has generated $130 billion of revenue. Signs that consumer demand is weakening and the economy is slowing weighed on the major indexes Thursday. ET. It will even calculate the return on investment and the break-even share price. Throughout the day, just over 3 million shares were sold. CHECK OUT: The No. (A quick note about how splits work: In a typical 2-for-1 split, shareholders receive two shares for every one share they own. Using our stock return calculator is really simple. After 10 years of adding the inflation-adjusted $1,000 a year, our hypothetical investor would have accumulated $16,187. How many times has Microsoft stock split since 1986? Further, delays in consulting business are anticipated to limit growth. The software giant is still growing at a good clip as management guides it into a new era of subscription-based products and cloud services.

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if you invested $1,000 in microsoft in 1986