And there is still upside for the long term, especially as Microsoft's Azure cloud business continues to outpace the competition. Microsoft's software quickly became familiar to business buyers of IBM's computers during the 1980s, which paved the way for tremendous growth during the rapid adoption of the PC in the 1990s. Like this story? Its success was cemented well before its IPO, back in the very early days after Bill Gates founded the company in 1975. In 2001, the company introduced the Xbox, which was also an immediate hit and sold 1.5 million units in less than two months . On the heels of the release of Windows 2.0 in 1987, it became the largest software company in the world by sales. Post-IPO, Microsoft continued to dominate the software industry. What was the price of Apple stock in 1985? The Motley Fool has a disclosure policy. Microsoft had its IPO on Mar. What would $1000 invested in Microsoft be worth today? (A quick note about how splits work: In a typical 2-for-1 split, shareholders receive two shares for every one share they own. 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. If you had invested in Microsoft ten years ago, you're probably feeling pretty good about your investment today. Like this story? mesurer votre utilisation de nos sites et applications. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. But there have been some early signs that those headwinds are easing, so 2023 might be a more favorable time for brands like Xbox and Surface. By fiscal 2022 (ended June 30), that figure has grown by 1,000 times to $198 billion. Microsoft announced its fiscal third-quarter earnings report after the bell on Tuesday, April 25. Profit and prosper with the best of expert advice - straight to your e-mail. It has been a long time since Microsoft announced the share split. Given Microsoft now trades at $238.73 per share, that translates to a return of 327,401%. In dollar terms, that $1,000 investment in 1986 would be worth a whopping $3.23 million today. Using our stock return calculator is really simple. What happens if you invest 100 in Amazon 10 years ago? Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%. Investguiding is a website that writes about many topics of interest to you, it's a blog that shares knowledge and insights useful to everyone in many fields. Zacks->. Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail. 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. While the major indexes failed to make big moves today, consumer staples giant Procter & Gamble popped after earnings. Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. What was Microsoft stock price in 1987? Shares of Microsoft closed the day at $27.75. Over the next few decades, Microsoft continued to innovate and expand its scope. Sign up for our new newsletter! The changes witnessed in Microsoft in 2003 are a perfect illustration of what can happen when a firm's growth levels off. Stock Calculator. 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. Post-IPO, Microsoft continued to dominate the software industry. Microsoft went public on March 13, 1986, at an opening price of $21 per share. A $5,000 investment would have purchased 238 shares at the IPO price. 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. Is Microsoft stock still a buy today? Here's How Much You'd Have If You Invested $1000 in Microsoft a Decade Are small businesses vulnerable to cyber attacks? 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. Microsofts performance is driven by strength in its Azure cloud platform amid accelerated global digital transformation. Should the Street's highest target price of $420 come to pass, MSFT stock would rise about 50% from current levels. When CEO Satya Nadella ascended to the top job in 2014, he not only began instituting cultural changes, he transformed Microsoft's core strategy too. John Ballard owns shares of Amazon and Microsoft. Azure's revenue grew by 35% year over year in the recent first quarter of fiscal 2023 (ended Sept. 30), which was three times the pace of Microsoft's overall revenue growth of 11%. The company, led by CEO Satya Nadella, had a strong 2021 with shares up almost 20% in the first half of the year. By comparison, the same amount invested in the S&P 500 over the same time frame would theoretically be worth $6,700 today. 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. To make the world smarter, happier, and richer. How long does it take to discover a data breach? How much money would you have if you invested in Microsoft in 1990? The dividends you would be earning every year are just as awesome. 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. Investment Date Original Shares Original Value Current Shares Current Value % Return Split Adjustment Current price; Mar 13, 1990: 100.00: 41421.62%: 143.99998 One of its most successful releases came in the in the mid-90s with the introduction of Windows 95. Microsoft paid its first quarterly dividend in 2004. Subscribe to CNBC Make It on YouTube! If you invested $1,000 in Microsoft at its IPO, here's how much money Want the latest recommendations from Zacks Investment Research? The top shareholders of Microsoft are Satya Nadella, Bradford L. Smith, Jean-Philippe Courtois, Vanguard Group Inc., BlackRock Inc. (BLK), and State Street Corp. Below is a look in more detail at Microsoft's 6 biggest shareholders. 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. When did Microsoft start paying dividends? This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries. 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. Over the past four quarters, Microsoft has generated $130 billion of revenue. 1 mistake this self-made millionaire sees first-time investors make: Your money is in financial purgatory, Get Make It newsletters delivered to your inbox, Learn more about the world of CNBC Make It, 2023 CNBC LLC. 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. Of course, that is still a fabulous return by any measure. 37. 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. Youre invited to check out Zacks Marijuana Moneymakers: An Investors Guide. It was up 67.3% for the year. Microsoft was founded in 1975 by Bill Gates and Paul Allen, two friends from high school who bonded over their mutual love of computer science . A long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS MoneyWatch, InvestorPlace and DailyFinance. This lessens the chance that a decline in a particular company's stock price would bring down your portfolio's overall performance. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Over its entire life as a publicly traded company, MSFT has generated an annualized total return (price change plus dividends) of almost 26%. But first things first. Signs that consumer demand is weakening and the economy is slowing weighed on the major indexes Thursday. 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. The Motley Fool has a disclosure policy. Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. nc forest service radio frequencies; how long can you live with a blocked carotid artery. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. MS-DOS was used in all IBM computers at the time and also became the go-to operating system for almost every PC on the market. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. He died in October 2018 at age 65 from complications of non-Hodgkin's lymphoma. What's not in doubt is that $1,000 invested in MSFT stock 20 years ago turned out to be an absolutely market-crushing deployment of capital. How much would I have if I invested $1000 in Amazon? 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