Should I buy or sell Microsoft stock right now?

38 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for Microsoft in the last twelve months. There are currently 4 hold ratings and 34 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should "moderate buy" MSFT shares. View MSFT analyst ratings or view top-rated stocks .

What is Microsoft's stock price target for 2024?

38 brokerages have issued twelve-month target prices for Microsoft's shares. Their MSFT share price targets range from $232.00 to $450.00. On average, they predict the company's share price to reach $388.84 in the next year. This suggests a possible upside of 2.7% from the stock's current price. View analysts price targets for MSFT or view top-rated stocks among Wall Street analysts .

How have MSFT shares performed in 2023?

Microsoft's stock was trading at $239.82 at the beginning of 2023. Since then, MSFT shares have increased by 57.9% and is now trading at $378.61. View the best growth stocks for 2023 here .

When is Microsoft's next earnings date?

The company is scheduled to release its next quarterly earnings announcement on Tuesday, January 23rd 2024. View our MSFT earnings forecast .

How were Microsoft's earnings last quarter?

Microsoft Co. (NASDAQ:MSFT) posted its quarterly earnings data on Tuesday, October, 24th. The software giant reported $2.99 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.65 by $0.34. The software giant had revenue of $56.52 billion for the quarter, compared to the consensus estimate of $54.52 billion. Microsoft had a net margin of 35.31% and a trailing twelve-month return on equity of 38.79%. The company's quarterly revenue was up 12.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.35 earnings per share. Read the conference call transcript .

How often does Microsoft pay dividends? What is the dividend yield for Microsoft?

Microsoft announced a quarterly dividend on Monday, September 18th. Shareholders of record on Thursday, November 16th will be given a dividend of $0.75 per share on Thursday, December 14th. This represents a $3.00 dividend on an annualized basis and a dividend yield of 0.79%. The ex-dividend date of this dividend is Wednesday, November 15th. This is a positive change from the stock's previous quarterly dividend of $0.68. Read our dividend analysis for MSFT .

Is Microsoft a good dividend stock?

Microsoft (NASDAQ:MSFT) pays an annual dividend of $3.00 per share and currently has a dividend yield of 0.79%. The company has been increasing its dividend for 22 consecutive years, indicating the company has a strong committment to maintain and grow its dividend. The dividend payout ratio is 29.04%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, MSFT will have a dividend payout ratio of 23.60% next year. This indicates that the company will be able to sustain or increase its dividend. Read our dividend analysis for MSFT .

What ETFs hold Microsoft's stock?

ETFs with the largest weight of Microsoft (NASDAQ:MSFT) stock in their portfolio include Natixis Loomis Sayles Focused Growth ETF (LSGR) , Direxion Daily MSFT Bull 1.5X Shares (MSFU) , Technology Select Sector SPDR Fund (XLK) , Vanguard Information Technology ETF (VGT) , iShares Global Tech ETF (IXN) , Fidelity MSCI Information Technology Index ETF (FTEC) , Direxion Daily Technology Bull 3X Shares (TECL) and iShares U.S. Technology ETF (IYW) .

What guidance has Microsoft issued on next quarter's earnings?

Microsoft updated its second quarter 2024 earnings guidance on Tuesday, October, 24th. The company provided earnings per share (EPS) guidance of for the period. The company issued revenue guidance of $60.40 billion-$61.40 billion, compared to the consensus revenue estimate of $55.08 billion.

What is Satya Nadella's approval rating as Microsoft's CEO?

11,127 employees have rated Microsoft Chief Executive Officer Satya Nadella on Glassdoor.com . Satya Nadella has an approval rating of 98% among the company's employees. This puts Satya Nadella in the top 20% of approval ratings compared to other CEOs of publicly-traded companies.

What other stocks do shareholders of Microsoft own?

Based on aggregate information from My MarketBeat watchlists, some companies that other Microsoft investors own include NVIDIA (NVDA) , Alibaba Group (BABA) , Micron Technology (MU) , General Electric (GE) , Tesla (TSLA) , Walt Disney (DIS) , Intel (INTC) , Netflix (NFLX) , Visa (V) .

Who are Microsoft's major shareholders?

Microsoft's stock is owned by a number of retail and institutional investors. Top institutional shareholders include FMR LLC (2.90%), Morgan Stanley (1.66%), Northern Trust Corp (1.09%), Legal & General Group Plc (0.66%), Charles Schwab Investment Management Inc. (0.58%) and Massachusetts Financial Services Co. MA (0.52%). Insiders that own company stock include Amy Hood , Bradford L Smith , Christopher C Capossela , Christopher C Capossela , Emma N Walmsley , Jean Philippe Courtois , Judson Althoff , Kathleen T Hogan , Satya Nadella and Teri List . View institutional ownership trends .

Does Microsoft have any subsidiaries?

The following companies are subsidiares of Microsoft: 5th Finger, 90 Degree Software, ADRM Software, AVIcode, Acompli, ActiveViews, Activision Blizzard, AdECN, Adallom, Adxstudio, Affirmed Networks, Alacris, Ally.io, Altamira Software, AltspaceVR, Aorato, Apiphany, Apptimum, Aspect Software Inc, AssetMetrix Corporation, Avere Systems, Azyxxi, BigPark, Bit Stadium GmbH, Blue Ribbon SoundWorks, BlueStripe, BlueTalon, Bonsai, Bruce Artwick Organization, Bungie, Caligari Corporation, Calista Technologies, Canesta, Capptain, Chalkup, Ciao, Citus Data, Clear Software, Clickstream Technologies, Clipchamp, CloudKnox Security, Cloudyn, Code Connect, Colloquis, Colusa Software, CompareNet, Compulsion Games, Connectix, Consumers Software, Cooper & Peters, Credentica, CyberX, Cycle Computing, DATAllegro, Danger, DataSense, Datazen Software, DeepMetrix, Deis.com, DesktopStandard, Digital Anvil, Dimension X, Donya Labs, Double Labs, EXOS, Echo Locker, Electric Gravity, Engyro, Entropic, Entropic Research Laboratories, Equivio, Event Zero, Express Logic, FASA Interactive, FSLogix, FantasySalesTeam, Farecast, Fast Search & Transfer, FieldOne Systems, Firefly Network, Flipgrid, FolderShare, Forethought, Fox Software, Frontbridge Technologies, GIANT Company Software, Genee, Github, Global Care Solutions, Great Plains Software, GreenButton, Greenfield Online, Groove (dba Zikera), Groove Networks, Gteko, Havok, Hexadite, HockeyApp, HotMail, InMage Systems, InRelease, Intentional Software, Interactive Supercomputing, Interse, Intrinsa, Jump Networks, Kidaro, Kinvolk, Komoku, LinkAge Software, LinkedIn, LinkedIn Corporation, LinkedIn Ireland Unlimited Company, Lionhead Studios, LiveLoop, Lobe, Lookout Software, MESA Group, MIXER, Maluuba, MarketingPilot, Massive, Media-Streams.com, Medstory, Merchant Planet, MessageCast, Metanautix, Metaswitch Networks, MetricsHub, Miburo, Microsoft Global Finance, Microsoft Ireland Operations Limited, Microsoft Ireland Research, Microsoft Online Inc., MinecraftEdu, Minit, MobiComp, Mobile Data Labs, Mojang Studios, MongoMusic, Motion Bridge, Mover, Movere, MultiMap, Musiwave, N-trig, NCompass Labs, Navic Networks, Navic Systems, Navision, NetCarta, NetGames, Netbreeze, Netwise, Network Managers, NextBase, Ninja Theory, Nokia - Devices & Services Business, Nuance Communications, Nuance Communications Inc., Numinous Technologies, Obsidian Entertainment, OmniBrowse, One Tree Software Ltd, Onfolio, Opalis Software, Open Build Service, Orions Systems, Pacific Microsonics, Pando Networks, Parature, Parlano, Peach Networks, Peer5, Pelican Security, Perceptive Pixel, PhoneFactor, PlaceWare, PlayFab, Playground Games, Powerset, ProClarity, Prodiance Corporation, PromoteIQ, R2 Studios, RAV Antivirus, Rapt, Rare, ReFirm Labs, RenderMorphics, Revolution Analytics, RiskIQ, Rosetta Biosoftware, STNC, Screen Tonic, SeaDragon Software, Secure Islands Technologies, Semantic Machines, Sendit, Sentillion, ShadowFactor Software, Skype, Smash.gg, SoftImage, Softomotive, Softricity, Softway Systems, Solair, StorSimple, Stratature, Sunrise, Suplari, SwiftKey, Swing Technologies, Sybari, SyntaxTree, TakeLessons, Talko, Teleo, Tellme, Tellme, The Marsden Group, Twisted Pixel Games, Two Hat Security, Undead Labs, Unveil Technologies, VXtreme, Valence Research, Valence Technology, Vermeer Technologies, Vexcel, Vicinity Corporation, VideoSurf, Visio Corporation, VoloMetrix, Wand Labs, WebFives, WebTV Networks, Whale Communications, Windows Live Hotmail, Winternals, Wunderlist, XDegrees, XOXCO, Xamarin, Xandr, YaData, Yammer, ZeniMax, Zoomit, Zoomix, aQuantive, devBiz Business Solutions, eShop, iView Multimedia, id8 Group R2 Studios, inXile Entertainment, jClarity, and linkexchange. Read More

Microsoft Stock Price, News & Analysis (NASDAQ:MSFT)

$378.61

+1.18 (+0.31%)

(As of 11/27/2023 ET)

Compare

Today's Range: $376.21
▼
$380.64
50-Day Range: $312.14
▼
$378.61
52-Week Range: $219.35
▼
$380.64

Volume: 22.15 million shs
Average Volume: 25.26 million shs
Market Capitalization: $2.81 trillion

P/E Ratio: 36.65
Dividend Yield: 0.79%
Price Target: $388.84

Microsoft MarketRank™ Stock Analysis

Analyst Rating: Moderate Buy
2.89 Rating Score
Upside/Downside: 2.7% Upside
$388.84 Price Target
Short Interest: Healthy
0.54% of Float Sold Short
Dividend Strength: Strong
Based on Four Factors
Sustainability: -0.75
Upright™ Environmental Score
News Sentiment: 0.30
Based on 83 Articles This Week
Insider Trading: Selling Shares
$21.34 M Sold Last Quarter
Proj. Earnings Growth: 14.20%
From $11.13 to $12.71 Per Share

Overall MarketRank^™

MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation.

2.85 out of 5 stars

Computer And Technology Sector

35th out of 585 stocks

Prepackaged Software Industry

9th out of 199 stocks

2.4

Analyst's Opinion

Consensus Rating
Microsoft has received a consensus rating of Moderate Buy. The company's average rating score is 2.89, and is based on 34 buy ratings, 4 hold ratings, and no sell ratings.
Price Target Upside/Downside
According to analysts' consensus price target of $388.84, Microsoft has a forecasted upside of 2.7% from its current price of $378.61.
Amount of Analyst Coverage
Microsoft has been the subject of 19 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

5.0

Short Interest

Percentage of Shares Shorted
0.54% of the float of Microsoft has been sold short.
Short Interest Ratio / Days to Cover
Microsoft has a short interest ratio ("days to cover") of 1.8, which is generally considered an acceptable ratio of short interest to trading volume.
Change versus previous month
Short interest in Microsoft has recently decreased by 7.98%, indicating that investor sentiment is improving significantly.

3.3

Dividend Strength

Dividend Yield
Microsoft has a dividend yield of 0.79%, which is in the bottom 25% of all stocks that pay dividends.
Dividend Growth
Microsoft has been increasing its dividend for 22 years.
Dividend Coverage
The dividend payout ratio of Microsoft is 29.04%. This payout ratio is at a healthy, sustainable level, below 75%.
Dividend Sustainability
Based on earnings estimates, Microsoft will have a dividend payout ratio of 23.60% next year. This indicates that Microsoft will be able to sustain or increase its dividend.

2.9

Sustainability and ESG

Overall ESG (Environmental, Social, and Governance) Score
Microsoft has received a 26.30% net impact score from Upright. Microsoft seems to create the most significant positive value in categories "Taxes", "Jobs", and "Knowledge infrastructure". The positive contribution in the "Knowledge infrastructure" impact category is mostly driven by its "Operating systems", "Cloud infrastructure services", and "Content management software" products. See details.
Environmental Sustainability
The Environmental Impact score for Microsoft is -0.75.

2.4

News and Social Media Coverage

News Sentiment
Microsoft has a news sentiment score of 0.30. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.48 average news sentiment score of Computer and Technology companies.
News Coverage This Week
MarketBeat has tracked 83 news articles for Microsoft this week, compared to 60 articles on an average week.
Search Interest
569 people have searched for MSFT on MarketBeat in the last 30 days. This is an increase of 3% compared to the previous 30 days.
MarketBeat Follows
Only 709 people have added Microsoft to their MarketBeat watchlist in the last 30 days. This is a decrease of -14% compared to the previous 30 days.

2.5

Company Ownership

Insider Buying vs. Insider Selling
In the past three months, Microsoft insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $21,335,619.00 in company stock.
Percentage Held by Insiders
Only 0.03% of the stock of Microsoft is held by insiders.
Percentage Held by Institutions
69.20% of the stock of Microsoft is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

2.5

Earnings and Valuation

Earnings Growth
Earnings for Microsoft are expected to grow by 14.20% in the coming year, from $11.13 to $12.71 per share.
Price to Earnings Ratio vs. the Market
The P/E ratio of Microsoft is 36.65, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 122.52.
Price to Earnings Ratio vs. Sector
The P/E ratio of Microsoft is 36.65, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 259.46.
Price to Earnings Growth Ratio
Microsoft has a PEG Ratio of 2.51. PEG Ratios above 1 indicate that a company could be overvalued.
Price to Book Value per Share Ratio
Microsoft has a P/B Ratio of 13.64. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

See Top Rated MarketRank™ Stocks Here

About Microsoft Stock (NASDAQ:MSFT)

Microsoft Corporation was founded in 1975 in Albuquerque, New Mexico by Bill Gates and Paul Allen. The two quit their respective Harvard schooling and programming jobs to start a software company focused on the then-popular Altair 8800. Originally named Micro-Soft, Microsoft is a portmanteau of the words microprocessor and software. The company quickly took off and was relocated to Washington State where it is headquartered today.

Microsoft launched a game called Flight Simulator in 1982 that has since become the longest-running video game franchise. The company’s first major breakthrough came in the early 80s when it licensed MS-DOS to IBM for their personal computer and then another came in 1985 the company altered the way computers were used when it launched Windows. Windows used a graphical interface to display information that included drop-down menus, scroll bars, and other features commonly found in operating systems today.

Microsoft went public in 1986 making founder Bill Gates the world’s youngest billionaire. Other innovations that helped make the company’s name include Windows 95 which included many upgrades to the original and, when the Internet took off, Internet Explorer. Bill Gates gave up his role as CEO in 2000 and the company is now run by Satya Nadella. Mr. Nadella took over the role of CEO in 2014 and then the role of chairman in 2021.

Today the company develops, licenses, and supports software, services, devices, and solutions worldwide. The company operates in three segments that include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. As of 2022, Microsoft’s Azure powered more than 20% of the Cloud putting it in second place globally.

The Productivity and Business Processes segment offers several software solutions including Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Skype for Business. Microsoft also operates Skype, Outlook.com, OneDrive, and LinkedIn for business professionals as well as Dynamics 365. Dynamics 365 is a set of cloud-based and on-premises business solutions for organizations and enterprises of all sizes.

The Intelligent Cloud segment licenses SQL, Windows Servers, Visual Studio, System Center, and related Client Access Licenses. Microsoft Intelligent Cloud also operates GitHub which is a collaboration platform and code hosting service for developers. Intelligent Cloud also hosts Nuance healthcare and enterprise AI solutions, and Azure, a cloud platform, as well as associated services.

The More Personal Computing segment provides Windows original equipment manufacturer (OEM) licensing and other licensing of the Windows family of operating systems. This includes Windows Commercial, Windows cloud services, and Windows Internet of Things.

The More Personal Computing segment also offers Surface, PC accessories, PCs, tablets, gaming and entertainment consoles, Xbox hardware, and Xbox content and services including video games and third-party video game royalties. The company sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online stores, and retail stores.

MSFT Stock Price History

30 days | 90 days | 365 days | Advanced Chart

MSFT Stock News Headlines

November 28, 2023 | marketbeat.com

Upwork underscores the strength of the AI gig economy (MSFT)

Upwork has been pursuing its goal of being the world's preeminent destination for artificial intelligence (AI) related talent and freelancers

November 27, 2023 | marketbeat.com

Is Microsoft the NVIDIA Killer?

Microsoft announced proprietary microchips for AI and cloud services that may threaten NVIDIA over time; NVIDIA will remain the leader but may lose share.

November 28, 2023 | DTI Trader (Ad)

Important info on NVDA trade

Today, I’m pulling back the curtain on my all-new Everyday Income project. A way for everyday folks to target a couple hundred bucks or more every single day the markets are open… Without breaking a sweat!

November 27, 2023 | marketbeat.com

AI revolution: 3 stocks set to soar as technology evolves (MSFT)

As AI stocks surge, Accenture expects investment in AI, creating opportunities for market leaders. Cognizant, Snowflake and Salesforce are undervalued AI names.

November 26, 2023 | marketbeat.com

Why These 8%+ Yielding Funds Crush Low-Fee Index Funds (Every Time)

November 25, 2023 | marketbeat.com

MarketBeat Week in Review – 11/20 - 11/24 (MSFT)

Stocks continued to rally as investors shrugged off a cautious retail outlook, but the rally's breadth remains limited to specific stocks and sectors

November 21, 2023 | marketbeat.com

Did You Miss the Rally? 5 Still-Cheap Dividends Up to 12.3%

November 21, 2023 | marketbeat.com

Microsoft's dynamic move: Shares surge as new AI unit established

Microsoft shares were up more than 2% after swiftly creating a generative AI unit headed up by ousted OpenAI CEO Sam Altman and other former OpenAI executives.

November 28, 2023 | DTI Trader (Ad)

Important info on NVDA trade

November 21, 2023 | marketbeat.com

Stock market today: Asian shares trading mixed after Wall Street rally led by Microsoft gains

Asian shares are trading mixed after a rally on Wall Street that was led by gains in Microsoft after it announced it was hiring Sam Altman, former CEO of OpenAI, the ChatGPT maker

November 20, 2023 | marketbeat.com

Microsoft, Palantir rise; Bristol-Myers, Kohl's fall, Monday, 11/20/2023

Stocks that are trading heavily or have substantial price changes on Monday: Microsoft, Palantir rise; Bristol-Myers, Kohl’s fall

November 20, 2023 | marketbeat.com

Dell Technologies breaks out, riding high on AI (MSFT)

Dell's recent climb, sparked by AI initiatives, signals a strategic shift amid PC market struggles. Despite earnings dip, Q3 guidance topped analysts' views.

November 28, 2023 | benzinga.com

Tech Conference Scandal: Microsoft, Amazon Execs Pull Out After Allegations Of Host Fabricating Phony Female Speakers

November 28, 2023 | wsj.com

Microsoft Needs a Better Seat at OpenAI's Table

November 27, 2023 | cnbc.com

Finnish startup Varjo launches new $3,990 mixed-reality headset to take on Apple, Microsoft

November 27, 2023 | seekingalpha.com

Microsoft: Priced For Zero Interest Rates

November 27, 2023 | msn.com

Microsoft more about 'finetuning' cybersecurity than ground-breaking products: Citi

November 27, 2023 | forbes.com

Stocks This Week: Buy Microsoft And KLA Corporation

November 26, 2023 | seekingalpha.com

Microsoft: OpenAI Drama A Huge Negative

November 26, 2023 | finance.yahoo.com

A Bull Market Is Coming: 1 Incredible Artificial Intelligence (AI) Growth Stock to Buy Hand Over Fist and Hold Forever

November 26, 2023 | americanbankingnews.com

Microsoft (NASDAQ:MSFT) Stock Rating Reaffirmed by Royal Bank of Canada

November 25, 2023 | wsj.com

The Unexpected Winner in the Craziest Week in AI

November 25, 2023 | finance.yahoo.com

Bill Gates Could Be A Trillionaire Today If He Had 'Diamond-Handed' His Original Microsoft Shares

November 25, 2023 | americanbankingnews.com

Microsoft's (MSFT) "Buy" Rating Reaffirmed at Mizuho

November 25, 2023 | finance.yahoo.com

The Biggest Winner in the OpenAI Fiasco

November 24, 2023 | finance.yahoo.com

Behind the Altman AI Flap: Money or Science?

November 24, 2023 | benzinga.com

Here's How Much $1000 Invested In Microsoft 15 Years Ago Would Be Worth Today

See More Headlines

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Company Calendar

Ex-Dividend for 9/14 Dividend: 8/16/2023
Dividend Payable: 9/14/2023
Last Earnings: 10/24/2023
Ex-Dividend for 12/14 Dividend: 11/15/2023
Today: 11/28/2023
Dividend Payable: 12/14/2023
Next Earnings (Estimated): 1/23/2024
Fiscal Year End: 6/30/2024

Get Stock Alerts

Industry, Sector and Symbol

Stock Exchange: NASDAQ
Industry: Prepackaged software
Sub-Industry: Systems Software
Sector: Computer and Technology
Current Symbol: NASDAQ:MSFT
CUSIP: 59491810
CIK: 789019
Web: www.microsoft.com
Phone: (425) 882-8080
Fax: 425-706-7329
Employees: 221,000
Year Founded: 1975

Price Target and Rating

Average Stock Price Target: $388.84
High Stock Price Target: $450.00
Low Stock Price Target: $232.00
Potential Upside/Downside: +2.7%
Consensus Rating: Moderate Buy
Rating Score (0-4): 2.89
Research Coverage: 38 Analysts

Profitability

EPS (Most Recent Fiscal Year): $10.33
Trailing P/E Ratio: 36.65
Forward P/E Ratio: 34.02
P/E Growth: 2.51
Net Income: $72.36 billion
Net Margins: 35.31%
Pretax Margin: 43.53%
Return on Equity: 38.79%
Return on Assets: 19.48%

Debt

Debt-to-Equity Ratio: 0.19
Current Ratio: 1.66
Quick Ratio: 1.64

Sales & Book Value

Annual Sales: $211.92 billion
Price / Sales: 13.28
Cash Flow: $11.77 per share
Price / Cash Flow: 32.17
Book Value: $27.76 per share
Price / Book: 13.64

Miscellaneous

Outstanding Shares: 7,432,260,000
Free Float: 7,430,032,000
Market Cap: $2.81 trillion
Optionable: Optionable
Beta: 0.88

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Key Executives

Mr. Satya Nadella (Age 56)
Chairman & CEO
Comp: $9.28M
Mr. Bradford L. Smith LCA (Age 64)
President & Vice Chairman
Comp: $3.59M
Ms. Amy E. Hood (Age 51)
Executive VP & CFO
Comp: $3.45M
Mr. Judson B. Althoff (Age 50)
Executive VP & Chief Commercial Officer
Comp: $3.36M
Mr. Christopher David Young (Age 51)
Executive Vice President of Business Development, Strategy & Ventures
Comp: $2.46M
Ms. Alice L. Jolla (Age 56)
Corporate VP & Chief Accounting Officer
Mr. James Kevin Scott (Age 51)
Executive VP of AI & CTO
Brett Iversen
Vice President of Investor Relations
Mr. Hossein Nowbar
Chief Legal Officer
Mr. Frank X. Shaw
Chief Communications Officer

Key Competitors

View All Competitors

Insiders & Institutions

View All Insider Transactions
View All Institutional Transactions

Should I Buy Microsoft Stock? MSFT Pros and Cons Explained

These insights were generated using artificial intelligence. They are based on proprietary MarketBeat data, news articles, and custom LLM A.I. algorithms. This analysis of Microsoft was last updated on Tuesday, November 14, 2023 at 3:50 PM.

Pros

Here are some ways that investors could benefit from investing in Microsoft:

Strong Growth in Azure: Microsoft's Azure cloud platform has experienced significant growth, outperforming competitors like AWS and GCP. This growth indicates Microsoft's emerging dominance in the hyper-scale cloud market, which could lead to increased profitability and market share.
Integration of AI: Microsoft has been actively integrating artificial intelligence (AI) into its products and services. This integration can lead to improved efficiency, productivity, and customer experiences, which may result in increased revenue and market competitiveness.
Diversified Product Portfolio: Microsoft offers a wide range of software, services, devices, and solutions worldwide. This diversified product portfolio reduces the company's reliance on any single product or market, providing stability and potential for growth.
Strong Financial Performance: Microsoft has consistently delivered strong financial results, with increasing revenue and profitability. This financial stability and performance can provide confidence to investors and potentially lead to long-term value appreciation.
Strategic Acquisitions: Microsoft has a history of strategic acquisitions, such as LinkedIn and GitHub. These acquisitions can enhance Microsoft's capabilities, expand its market reach, and drive future growth and innovation.

Cons

Investors should be bearish about investing in Microsoft for these reasons:

Competition in the Cloud Market: While Microsoft's Azure has shown strong growth, it faces intense competition from other cloud providers like AWS and GCP. This competition could lead to pricing pressures and potential market share loss.
Regulatory Risks: As a large technology company, Microsoft is subject to regulatory scrutiny and potential antitrust actions. Regulatory risks can impact the company's operations, market reputation, and financial performance.
Dependence on Windows: Microsoft's More Personal Computing segment heavily relies on the Windows operating system. Any decline in the demand for Windows or a shift in consumer preferences towards alternative operating systems could negatively impact Microsoft's revenue and profitability.
Cybersecurity Threats: As a technology company, Microsoft faces cybersecurity threats and risks. Any successful cyberattack or data breach could result in financial losses, reputational damage, and legal liabilities.
Macroeconomic Factors: Microsoft's financial performance can be influenced by macroeconomic factors such as economic downturns, currency fluctuations, and geopolitical uncertainties. These factors can impact customer spending, business investments, and overall market conditions.

MSFT Stock Analysis - Frequently Asked Questions

Should I buy or sell Microsoft stock right now?: 38 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for Microsoft in the last twelve months. There are currently 4 hold ratings and 34 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should "moderate buy" MSFT shares.
View MSFT analyst ratings or view top-rated stocks.
What is Microsoft's stock price target for 2024?: 38 brokerages have issued twelve-month target prices for Microsoft's shares. Their MSFT share price targets range from $232.00 to $450.00. On average, they predict the company's share price to reach $388.84 in the next year. This suggests a possible upside of 2.7% from the stock's current price.
View analysts price targets for MSFT or view top-rated stocks among Wall Street analysts.
How have MSFT shares performed in 2023?: Microsoft's stock was trading at $239.82 at the beginning of 2023. Since then, MSFT shares have increased by 57.9% and is now trading at $378.61.
View the best growth stocks for 2023 here.
When is Microsoft's next earnings date?: The company is scheduled to release its next quarterly earnings announcement on Tuesday, January 23rd 2024.
View our MSFT earnings forecast.
How were Microsoft's earnings last quarter?: Microsoft Co. (NASDAQ:MSFT) posted its quarterly earnings data on Tuesday, October, 24th. The software giant reported $2.99 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.65 by $0.34. The software giant had revenue of $56.52 billion for the quarter, compared to the consensus estimate of $54.52 billion. Microsoft had a net margin of 35.31% and a trailing twelve-month return on equity of 38.79%. The company's quarterly revenue was up 12.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.35 earnings per share.
Read the conference call transcript.
How often does Microsoft pay dividends? What is the dividend yield for Microsoft?: Microsoft announced a quarterly dividend on Monday, September 18th. Shareholders of record on Thursday, November 16th will be given a dividend of $0.75 per share on Thursday, December 14th. This represents a $3.00 dividend on an annualized basis and a dividend yield of 0.79%. The ex-dividend date of this dividend is Wednesday, November 15th. This is a positive change from the stock's previous quarterly dividend of $0.68.
Read our dividend analysis for MSFT.
Is Microsoft a good dividend stock?: Microsoft (NASDAQ:MSFT) pays an annual dividend of $3.00 per share and currently has a dividend yield of 0.79%. The company has been increasing its dividend for 22 consecutive years, indicating the company has a strong committment to maintain and grow its dividend. The dividend payout ratio is 29.04%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, MSFT will have a dividend payout ratio of 23.60% next year. This indicates that the company will be able to sustain or increase its dividend.
Read our dividend analysis for MSFT.
What ETFs hold Microsoft's stock?: ETFs with the largest weight of Microsoft (NASDAQ:MSFT) stock in their portfolio include Natixis Loomis Sayles Focused Growth ETF (LSGR), Direxion Daily MSFT Bull 1.5X Shares (MSFU), Technology Select Sector SPDR Fund (XLK), Vanguard Information Technology ETF (VGT), iShares Global Tech ETF (IXN), Fidelity MSCI Information Technology Index ETF (FTEC), Direxion Daily Technology Bull 3X Shares (TECL) and iShares U.S. Technology ETF (IYW).

What guidance has Microsoft issued on next quarter's earnings?: Microsoft updated its second quarter 2024 earnings guidance on Tuesday, October, 24th. The company provided earnings per share (EPS) guidance of for the period. The company issued revenue guidance of $60.40 billion-$61.40 billion, compared to the consensus revenue estimate of $55.08 billion.
What is Satya Nadella's approval rating as Microsoft's CEO?: 11,127 employees have rated Microsoft Chief Executive Officer Satya Nadella on Glassdoor.com. Satya Nadella has an approval rating of 98% among the company's employees. This puts Satya Nadella in the top 20% of approval ratings compared to other CEOs of publicly-traded companies.
What other stocks do shareholders of Microsoft own?: Based on aggregate information from My MarketBeat watchlists, some companies that other Microsoft investors own include NVIDIA (NVDA), Alibaba Group (BABA), Micron Technology (MU), General Electric (GE), Tesla (TSLA), Walt Disney (DIS), Intel (INTC), Netflix (NFLX), Visa (V).
Who are Microsoft's major shareholders?: Microsoft's stock is owned by a number of retail and institutional investors. Top institutional shareholders include FMR LLC (2.90%), Morgan Stanley (1.66%), Northern Trust Corp (1.09%), Legal & General Group Plc (0.66%), Charles Schwab Investment Management Inc. (0.58%) and Massachusetts Financial Services Co. MA (0.52%). Insiders that own company stock include Amy Hood, Bradford L Smith, Christopher C Capossela, Christopher C Capossela, Emma N Walmsley, Jean Philippe Courtois, Judson Althoff, Kathleen T Hogan, Satya Nadella and Teri List.
View institutional ownership trends.
How do I buy shares of Microsoft?: Shares of MSFT stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab.
Compare Top Brokerages Here.
Does Microsoft have any subsidiaries?: The following companies are subsidiares of Microsoft: 5th Finger, 90 Degree Software, ADRM Software, AVIcode, Acompli, ActiveViews, Activision Blizzard, AdECN, Adallom, Adxstudio, Affirmed Networks, Alacris, Ally.io, Altamira Software, AltspaceVR, Aorato, Apiphany, Apptimum, Aspect Software Inc, AssetMetrix Corporation, Avere Systems, Azyxxi, BigPark, Bit Stadium GmbH, Blue Ribbon SoundWorks, BlueStripe, BlueTalon, Bonsai, Bruce Artwick Organization, Bungie, Caligari Corporation, Calista Technologies, Canesta, Capptain, Chalkup, Ciao, Citus Data, Clear Software, Clickstream Technologies, Clipchamp, CloudKnox Security, Cloudyn, Code Connect, Colloquis, Colusa Software, CompareNet, Compulsion Games, Connectix, Consumers Software, Cooper & Peters, Credentica, CyberX, Cycle Computing, DATAllegro, Danger, DataSense, Datazen Software, DeepMetrix, Deis.com, DesktopStandard, Digital Anvil, Dimension X, Donya Labs, Double Labs, EXOS, Echo Locker, Electric Gravity, Engyro, Entropic, Entropic Research Laboratories, Equivio, Event Zero, Express Logic, FASA Interactive, FSLogix, FantasySalesTeam, Farecast, Fast Search & Transfer, FieldOne Systems, Firefly Network, Flipgrid, FolderShare, Forethought, Fox Software, Frontbridge Technologies, GIANT Company Software, Genee, Github, Global Care Solutions, Great Plains Software, GreenButton, Greenfield Online, Groove (dba Zikera), Groove Networks, Gteko, Havok, Hexadite, HockeyApp, HotMail, InMage Systems, InRelease, Intentional Software, Interactive Supercomputing, Interse, Intrinsa, Jump Networks, Kidaro, Kinvolk, Komoku, LinkAge Software, LinkedIn, LinkedIn Corporation, LinkedIn Ireland Unlimited Company, Lionhead Studios, LiveLoop, Lobe, Lookout Software, MESA Group, MIXER, Maluuba, MarketingPilot, Massive, Media-Streams.com, Medstory, Merchant Planet, MessageCast, Metanautix, Metaswitch Networks, MetricsHub, Miburo, Microsoft Global Finance, Microsoft Ireland Operations Limited, Microsoft Ireland Research, Microsoft Online Inc., MinecraftEdu, Minit, MobiComp, Mobile Data Labs, Mojang Studios, MongoMusic, Motion Bridge, Mover, Movere, MultiMap, Musiwave, N-trig, NCompass Labs, Navic Networks, Navic Systems, Navision, NetCarta, NetGames, Netbreeze, Netwise, Network Managers, NextBase, Ninja Theory, Nokia - Devices & Services Business, Nuance Communications, Nuance Communications Inc., Numinous Technologies, Obsidian Entertainment, OmniBrowse, One Tree Software Ltd, Onfolio, Opalis Software, Open Build Service, Orions Systems, Pacific Microsonics, Pando Networks, Parature, Parlano, Peach Networks, Peer5, Pelican Security, Perceptive Pixel, PhoneFactor, PlaceWare, PlayFab, Playground Games, Powerset, ProClarity, Prodiance Corporation, PromoteIQ, R2 Studios, RAV Antivirus, Rapt, Rare, ReFirm Labs, RenderMorphics, Revolution Analytics, RiskIQ, Rosetta Biosoftware, STNC, Screen Tonic, SeaDragon Software, Secure Islands Technologies, Semantic Machines, Sendit, Sentillion, ShadowFactor Software, Skype, Smash.gg, SoftImage, Softomotive, Softricity, Softway Systems, Solair, StorSimple, Stratature, Sunrise, Suplari, SwiftKey, Swing Technologies, Sybari, SyntaxTree, TakeLessons, Talko, Teleo, Tellme, Tellme, The Marsden Group, Twisted Pixel Games, Two Hat Security, Undead Labs, Unveil Technologies, VXtreme, Valence Research, Valence Technology, Vermeer Technologies, Vexcel, Vicinity Corporation, VideoSurf, Visio Corporation, VoloMetrix, Wand Labs, WebFives, WebTV Networks, Whale Communications, Windows Live Hotmail, Winternals, Wunderlist, XDegrees, XOXCO, Xamarin, Xandr, YaData, Yammer, ZeniMax, Zoomit, Zoomix, aQuantive, devBiz Business Solutions, eShop, iView Multimedia, id8 Group R2 Studios, inXile Entertainment, jClarity, and linkexchange.
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This page (NASDAQ:MSFT) was last updated on 11/28/2023 by MarketBeat.com Staff

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