If You Invested $1,000 in Microsoft Stock in 1986, Here's How Much You 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 S&P 500's total return comes to not quite 10% over the same period. 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. How much would Bill Gates be worth if he didn't sell his shares? Along the way, Microsoft stock generated $1.91 trillion in wealth for shareholders, good for an annualized dollar weighted return of 19.2%, according to Hendrik Bessembinder (opens in new tab), professor of finance at the W.P. One of the best-performing technology stocks of all time is Microsoft Corporation MSFT. All Rights Reserved. But it gets . One of its most successful releases came in the in the mid-90s with the introduction of Windows 95. Written by The latest price is $292.27. Allen had left Microsoft years earlier but held onto a significant stake in the company. 36. The dividends you would be earning every year are just as awesome. After the splits, you would now own 68,544 shares. 2023 Investguiding. Gates has a lot of his financial investments held by a family office known as Cascade Investments. Although a stock may perform well in the short-term, that doesn't necessarily mean it will continue to do so over the long-term. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Even after leaving Microsoft, Allen remained a titan in the tech industry, as well as an influential member of the Seattle community. Not too long ago, Microsoft (MSFT (opens in new tab)) stock's glory days looked to be behind it as sales of desktop PCs slipped into a seemingly irreversible decline amid the consumer shift to mobile technology. Microsoft went public on March 13, 1986, at an opening price of $21 per share. Today, that discovery is still the heart of the Zacks Rank. Which brings us to what $1,000 invested in MSFT stock 20 years ago would be worth today. Additionally, passive funds are generally less risky since they invest in a wide array of companies. Notably, shares have outperformed the industry in the past six months' time. When Satya Nadella took over as CEO in 2014, he began a major turnaround at the software company. 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 . Amazon.com's Share Price Over Last 20 Years If you had invested $1,000 in Amazon.com you would have approximately $218,793.08 today. That's the power of long-term investing. Does Bill Gates still own Microsoft stock? However, "the first trade took place at $25.50 a share, an indication of the fierce demand for the stock," the Seattle Post-Intelligencer reported at the time. Microsoft (MSFT -0.55%) is well known for its Windows and Office software. The stock has jumped 7.52% over the past four weeks. 20. (Video) Imagine if you had invested $10,000 on Apple IPO - How Much Would You Have Today? That includes price appreciation and dividends. If you had invested in Microsoft ten years ago, you're probably feeling pretty good about your investment today. 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. 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. Those are impressive growth rates for such a large company. nc forest service radio frequencies; how long can you live with a blocked carotid artery. The company is also witnessing growth in user base of its different applications including Microsoft 365 suite and Dynamics. That's better than the so-called FAANG stocks, plus Ebay which debuted in that same period. During its early years, the company was heavily focused on software for personal computers, such as its Windows operating system and Microsoft Word. 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%. In those early years, Microsoft's future success was all but guaranteed, based on its growing relationship with Intel and IBM. But after 20 years of this, the account would be worth $118,874. This lessens the chance that a decline in a particular company's stock price would bring down your portfolio's overall performance. How rich would I be if I invested in Amazon? Microsoft's operational diversity means its best growth opportunities might still be ahead of it. How much working capital do I need when buying a business? Its software is so widely used that Microsoft is one of the few companies to have reached a market capitalization of $1 trillion. 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. The current payout is $0.51 per share each quarter. Those splits were followed by 3:2 stock splits in 1991 and 1992. Since Nadella took over, Microsoft's share price has nearly tripled. The stock split nine times over the years, with two of those being 3-for-2 splits. Type a symbol or company name. $10,000 investment in Apple stock 10 years ago is worth $667,159.85 today : r/apple. The changes witnessed in Microsoft in 2003 are a perfect illustration of what can happen when a firm's growth levels off. Without advertising income, we can't keep making this site awesome for you. DON'T MISS: Want to be smarter and more successful with your money, work & life? What would $1000 invested in Amazon in 1997 be worth today? Create your Watchlist to save your favorite quotes on Nasdaq.com. How much will Microsoft stock be worth in 5 years? Given Microsoft now trades at $238.73 per share, that translates to a return of 327,401%. Further, delays in consulting business are anticipated to limit growth. Adjusting for the stock splits, you'd actually have 13,536 shares today with a cost basis of $0 . The major indexes made modest moves ahead of earnings from Microsoft, Alphabet and Meta Platforms. Type a symbol or company name. 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 35.7% of fiscal 2021 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 32.2% of fiscal 2021 revenues. Originally, only 2.5 million were offered, but the number was raised to meet demand. 2023 Benzinga.com. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. 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. Currently, Microsoft has a market capitalization of $2.12 trillion. 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. A $1,000 investment in Microsoft on the . Of course, that is still a fabulous return by any measure. After 10 years of adding the inflation-adjusted $1,000 a year, our hypothetical investor would have accumulated $16,187. Lorsque vous utilisez nos sites et applications, nous utilisons des, authentifier les utilisateurs, appliquer des mesures de scurit, empcher les spams et les abus; et. Originally, only 2.5 million were offered, but the number was raised to meet demand. As of April 26, the S&P 500 declined nearly 3% compared with its level 12 months ago, according to CNBC's calculations. A wealth of resources for individual investors is available at www.zacks.com. But the past 10 years have been nothing short of a renaissance for the software giant. In dollar terms, that $1,000 investment in 1986 would be worth a whopping $3.23 million today.