Published on 22.03.2024

Microsoft Stock

View Microsoft's share price below and learn more about this stock.

Microsoft stock price

 (
Date
Time
+/- +/-%
YTD

1D

1W

1M

3M

6M

1Y

3Y

5Y

Name Latest price Difference Currency

Microsoft's initial public offering (IPO)

On March 13, 1986, Microsoft Corp was listed on the Nasdaq in New York for $21 per share. The ticker symbol for the stock is 'MSFT', and the international ISIN code is US594918104.

Initially, Bill Gates, the founder of Microsoft, had not intended to take the company public. However, an extensive employee stock option program led to the number of shareholders quickly approaching 500. According to the regulations of the Securities and Exchange Commission (SEC) at the time, crossing this threshold would require the company to disclose its financial results.

Gates likely had no regrets about the IPO, as there was significant demand for the stock. On the first day of trading, the share price closed significantly higher at $28. The IPO raised $61 million for Microsoft and gave the software giant a market capitalisation of $777 million. Microsoft rapidly became one of the most valuable companies in the world.

Since its listing, the stock has undergone nine stock splits. Some say that Microsoft has created unparalleled value for its original shareholders since their IPO.

Business strategy and future

In the rapidly evolving technology world, Microsoft has had to reinvent itself over the past decade. When Indian-born American Satya Nadella succeeded Steve Ballmer as CEO in 2014, Microsoft had fallen out of favour long with investors for quite some time already. The company was seen as a pre-historic dinosaur in the tech industry, surpassed by arch-rival Apple's success with the iPhone and newcomers like Google and Facebook. Microsoft had missed the smartphone revolution and relied heavily on the dominance of Windows in the PC market.

Under Nadella's leadership, Microsoft underwent a complete transformation, shifting its focus from Windows to cloud services. He implemented a significant reorganisation in the phone division, resulting in the loss of 18,000 jobs, and wrote off the goodwill from the acquisition of Nokia. The Finnish mobile phone maker was acquired by Steve Ballmer for $7.9 billion shortly before his departure. However, the phone division never turned profitable.

Today, Microsoft provides a wide range of software products and digital services to both the business and consumer markets. Windows, along with the Office software suite, continues to be the backbone of the company. However, in recent years, Microsoft has also made significant strides in the cloud services market, offering customers the option to subscribe to software and underlying infrastructure, such as servers, over the internet.so made several major acquisitions, including the professional networking site LinkedIn, speech software producer Nuance Communications and the gaming company ZeniMax. With its cloud platform Azure, Microsoft is now one of the largest players in the cloud market alongside Amazon and Google. It provides critical infrastructure such as servers and databases via the internet, as well as consumer and enterprise software (Microsoft 365 and Dynamics 365) and video games. Plus, with 'Windows 365,' Microsoft now brings its renowned PC operating system to the cloud. The company's focus remains on cloud services, catering to the rapid digitisation of society. Windows aim is to continually evolve. The latest version of Windows 11 is a good example as it is designed, among other things, for users who work partially from home, with features such as integrating the video software Teams into the taskbar.

History of Microsoft

Microsoft Corporation was founded in 1975 in Albuquerque, New Mexico, by childhood friends Bill Gates and the late Paul Allen. The latter came up with the name Micro-Soft, a combination of microcomputer and software. Over the following decades, the company grew to become the world’s largest software producer and a prominent member of the top ten most valuable companies in the world. How did Microsoft achieve such remarkable success?

The breakthrough came in 1980 when Microsoft signed a licensing agreement with IBM to use the MS-DOS operating system for their personal computers (PCs). Microsoft received a royalty payment for every PC sold, giving them an edge in the rapidly growing PC market.

Gates successfully sold the operating system to other computer manufacturers, leading to a significant increase in revenue and establishing it as the standard in the PC market over the years. In 1985, MS-DOS was replaced by the more versatile and visually appealing Windows. A year later, the company relocated to Redmond, Washington. Microsoft captured over 90% of the PC market during that period.

Today, Microsoft provides a wide range of software products and digital services to both the business and consumer markets. Windows, along with the Office software suite, continues to be the backbone of the company. However, in recent years, Microsoft has also made significant strides in the cloud services market, offering customers the option to subscribe to software and underlying infrastructure, such as servers, over the internet.

Until 2000, Gates served as the CEO of Microsoft, after which he remained involved with the company as Chairman of the Board. In 2020, Gates stepped down from the board to dedicate more time to his philanthropic projects. Co-founder Paul Allen sadly passed away in 2018 at the age of 65 from non-Hodgkin lymphoma.

Microsoft’s environmental goals

Microsoft has set ambitious goals to address the environmental and social challenges facing the world, such as becoming carbon negative by 2030, sourcing 60% of its energy from renewable sources by 2030 and improving water efficiency by 30% by 2025.

The information in this article is not written for advisory purposes, nor does it intend to recommend any investments. Please be aware that facts may have changed since the article was originally written. Investing involves risks (e.g price volatility, currency or liquidity risk). You can lose your invested funds. Consider your knowledge and experience when making investment decisions. Past performance is not a reliable indicator of future results. Markets are volatile and can fluctuate significantly due to economic, political, regulatory, or other developments.

Sources: Microsoft, Goldman Sachs, cnbc.com, The Verge.

 (
Date
Time

Results

Period +/- +/-%
1 Week
1 Month
6 Months
YTD
1 Year
5 Year

Sector related stocks

Name Latest price Currency Difference
backtotop

Your investment journey starts here

Open an account for free and join over 2.5 million investors on our user-friendly platform.

Note:
Investing involves risks. You can lose (a part of) your invested funds. We advise you to only invest in financial products which match your knowledge and experience. This is not investment advice.

Investing involves risks.

icon_close

We want to empower people to become the best investors they can be. By offering a universe of possibilities and choices on our user-friendly platform, we are removing barriers to make investing accessible to everyone: beginners or experts. You get access to a wide variety of products on more than 50 global exchanges to have the freedom to invest the way you like. In our world, you also get great value for money. So, without compromising an inch on the quality, security and range of our investment services, we offer incredibly low fees. Prioritising your needs has helped us become the leading European online broker. Our 2.5+ million clients and 100+ international awards are proof of our success.

flatexDEGIRO Bank Dutch Branch, a foreign branch of flatexDEGIRO Bank AG | Amstelplein 1, 1096HA Amsterdam | phone: +31 20 2613072 | e-mail: clients@degiro.ie | flatexDEGIRO Bank Dutch Branch is registered with the Dutch Chamber of Commerce under number 82510245. | flatexDEGIRO Bank Dutch Branch, trading under the name DEGIRO, is the Dutch branch of flatexDEGIRO Bank AG. flatexDEGIRO Bank AG is primarily supervised by the German financial regulator (BaFin). In the Netherlands, flatexDEGIRO Bank Dutch Branch is registered with DNB and supervised by AFM and DNB. | flatexDEGIRO Bank AG is a licensed German bank supervised by the German financial regulator and registered with the German Chamber of Commerce under number HRB 105687.