Microsoft is a technology company which produces computer software and electronics. Microsoft is known for its operating systems, Xbox consoles and LinkedIn. Microsoft is one of the "Big 5" information technology companies, including Google, Apple, Amazon and Meta. Here's how to invest in Microsoft.
Both exchange rates and share prices fluctuate in real time, so the costs estimated here should be considered as a guide only. They don't factor in spreads, which can be hard to pin down. Always refer to the platform itself for availability and pricing.
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4.39 ★★★★★ |
£0 | $100 | £663.66 |
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4.3 ★★★★★ |
£0 | £0 | £663.66 |
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4.4 ★★★★★ |
£0 | £0 | £663.66 |
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4.2 ★★★★★ |
£0 | £1 | £678.91 |
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4.34 ★★★★★ |
0% - 0.25% | £100 | N/A |
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4.1 ★★★★★ |
£0 | £0 | N/A |
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Buying shares in just one company is generally considered a riskier bet than investing in a range of investments - AKA a "diversified portfolio". Experts generally recommend holding a mix of investments in specific assets and funds. Funds are ready-made portfolios of multiple companies' shares (potentially including Microsoft), and the idea is that drops in the value of one constituent company's share price might be offset by rises in others.
Microsoft is a major part of the NASDAQ, so it's included in many global funds and investment trusts, as well as tracker-style exchange traded funds (ETFs).
| Icon | Fund | 5-year performance | 1-year performance (to October 2023) | Link to invest |
|---|---|---|---|---|
 | Invesco S&P 500 (SPXP) | 70.17% | 10.90% | Capital at risk |
 | Xtrackers S&P 500 Swap (XSPX) | 69.98% | 10.83% | Capital at risk |
 | HSBC S&P 500 (HSPX) | 68.59% | 10.87% | Capital at risk |
 | Vanguard S&P 500 (VUSA) | 68.24% | 10.73% | Capital at risk |
 | iShares Core S&P 500 (CSP1) | 68.20% | 10.73% | Invest with eToroCapital at risk |
 | SPDR S&P 500 ETF (SPX5) | 67.96% | 10.70% | Capital at risk |
April 15, 2024: Reports says Microsoft has invested $1.5 billion in UAE's top artificial intelligence (AI) firm, G42. As part of the deal, Microsoft will be getting a board seat and G42 will be using Azure cloud for its AI applications.
March 31, 2024: Jefferies analysts maintained a Buy rating on Microsoft, with an updated price target of $550 (from $465), according to Benzinga.
March 28, 2024: Microsoft and OpenAI are planning an unprecedented supercomputer that uses millions of specialized server chips and could cost up to $100 billion, according to Business Insider.
March 25, 2024: Wedbush analysts maintained an Outperform rating on Microsoft, with an updated price target of $500 (up from $475), according to Benzinga.
March 19, 2024: Microsoft has hired DeepMind co-founder, Mustafa Suleyman, to be the CEO of its new artificial intelligence (AI) unit.
Only you can make the decision on the time to leap... but here's some supporting information and analysis.
Over the last 12 months, Microsoft's shares have ranged in value from as little as $273.1284 up to $430.82. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Microsoft's is 0.877. This would suggest that Microsoft's shares are less volatile than average (for this exchange).
Historical closes compared with the last close of $411.49
| 1 week (2024-04-10) | -3.84% |
|---|---|
| 1 month (2024-03-17) | -1.40% |
| 3 months (2024-01-17) | 4.47% |
| 6 months (2023-10-17) | 24.65% |
| 1 year (2023-04-17) | 42.70% |
| 2 years (2022-04-17) | 46.69% |
| 3 years (2021-04-15) | 57.82% |
| 5 years (2019-04-17) | 233.54% |
The gauge below shows real-time ratings that are based on 26 popular indicators such as moving averages, for specific time periods. It's not a recommendation but is simply technical analysis that can form part of your research.
Finder might not agree with the analysis and we take no responsibility. We also give no representations or warranty on the accuracy or completeness of the information provided on this page.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Valuing a stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of overall performance. However, analysts commonly use some key metrics to help gauge value. Check out the Microsoft P/E ratio, PEG ratio and EBITDA
Microsoft's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 37x. In other words, Microsoft shares trade at around 37x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the United States stock markets on average as of November 09, 2023 (20.44). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
However, Microsoft's P/E ratio is best considered in relation to those of others within the industry or those of similar companies.
Microsoft's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.1026. A PEG ratio over 1 can be interpreted as meaning shares are overvalued at the current rate of growth, or may anticipate an acceleration in growth.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Microsoft's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider Microsoft's PEG ratio in relation to those of similar companies.
Microsoft's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping $118.4 billion (£95 billion).
The EBITDA is a measure of a Microsoft's overall financial performance and is widely used to measure a its profitability.
To put that into context you can compare it against similar companies.
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
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