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How to Buy Microsoft Stock

Microsoft Corp

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The company operates in three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.

Microsoft stock last closed at $288.30, up 1.5% from the previous day, and has decreased 6.49% in one year. It has overperformed other stocks in the Software - Infrastructure industry by 0.15 percentage points. Microsoft stock is currently +35.08% from its 52-week low of $213.43, and -8.51% from its 52-week high of $315.11.

There are currently 7.44B shares of MSFT outstanding. The market capitalization of MSFT is $2.15T. In the last 24 hours, 32.09M MSFT shares were traded.

How to Buy Microsoft Stock

Wondering how to invest in Microsoft stock? Here's how.
  1. Figure out where to buy Microsoft stock: You need to pick a stock brokerage, but don't worry - we've tried dozens of online stock brokerages and apps to help you figure out where to buy Microsoft stock.
  2. Open your brokerage account: Sign up for 0% fee trading with the highest-rated brokerage we've selected.
  3. Deposit funds into your brokerage account: Choose your payment method and add your details.
  4. Evaluate Microsoft stock: The Microsoft ticker symbol is MSFT. Is Microsoft stock a good investment? Should you buy shares of MSFT? How do MSFT's underlying business fundamentals look? Do top analysts think Microsoft is a good buy? Why has MSFT's stock price moved recently? (Hint: Our stock market analysis website can help you evaluate if MSFT is a good stock to buy).
  5. Execute your MSFT trade: Decide if you will purchase MSFT shares at the current market price or use a limit order to buy MSFT stock at a particular price.
  6. Get the latest news on your MSFT position: Create a watchlist to track your investment in Microsoft stock.

Step 1: Figure out where to buy Microsoft stock

You will need a brokerage account in order to access the NASDAQ market and buy MSFT shares.

A brokerage account is an investment account that allows you to buy and sell a number of financial instruments, including stocks, bonds, mutual funds, and ETFs.

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Step 2: Open your brokerage account

Now that you've selected your brokerage, it's time to fill out some personal info so you can buy MSFT stock today.

How to Open a New Account on eToro

  1. Click here to get started.
  2. Input your personal data to start your new brokerage account.
  1. Submit your info by pressing the "Create Account" button.
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Step 3: Deposit funds into your brokerage account

Now that you have filled out your info on the best stock app, your next step is to transfer the money for your investment:

Watch this video walkthrough to see the process of transferring money into your new brokerage account.

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Step 4: Evaluate Microsoft stock

After you have chosen the best place to buy Microsoft stock, it's critical to evaluate their stock prior to buying, so you truly understand the risk as well as the upside.

Microsoft quick stats

MSFT Price
$288.30
1w %
2.76%
1y %
-6.49%
5y %
225.69%
P/E
31.96x
P/B
11.72x
P/S
10.53x
PEG
3.13x
Revenue
$204.09B
Earnings
$67.45B
Fore. Rev. Growth
8.08%
Fore. Earn. Growth
10.2%
Market Cap
$2.15T
Next Earnings
Apr 24, 2023
Next Dividend
Jun 8, 2023

MSFT Due Diligence Checks

WallStreetZen was created to help average investors do more in-depth fundamental analysis in minutes instead of hours.

You can see all of the due diligence checks on MSFT's stock page.

Is MSFT stock properly valued?

Investors use a variety of different financial metrics, analyses, models, and charts to gauge MSFT's fair value.

Using relative valuations ratios:

  • MSFT could be undervalued based on its P/E ratio of 31.96x, relative to Software - Infrastructure industry P/E ratio of 55x
  • MSFT may be overvalued based on its P/B ratio of 11.72x, relative to Software - Infrastructure industry P/B ratio of 10.96x
  • MSFT could be overvalued based on its PEG ratio of 3.13x

You can do more valuation research on MSFT's stock here.

MSFT Financial Summary

Signs that MSFT is financially healthy:

  • MSFT earnings of $84.58B is not enough to cover its interest payments.
  • There are more short-term assets than short-term liabilities on the MSFT balance sheet.
  • MSFT's operating cash flow of $84.39B allows it to safely service it's debt of $60.11B.
  • Total MSFT debt is lower than 5 years ago, relative to shareholder equity.
  • There are more short-term assets than long-term liabilities on the MSFT balance sheet.

Signs that MSFT is not financially healthy:

  • MSFT profit margin has gone down from 38.5% to 33% in the past year.
  • MSFT has a relatively high debt to equity ratio of 0.99.

Is Microsoft stock a Buy, Hold, or Sell, according to Wall Street analysts?

Out of 27 Wall Street analysts who monitor MSFT, the consensus analyst rating on MSFT is a Strong Buy

Please note that analyst ratings are not recommendations, nor are they investment advice.

Most Recent MSFT Analyst Upgrades/Downgrades

Michael Turits, a top 16% analyst from KeyBanc maintains MSFT with a strong buy rating and raises their MSFT price target from $270.00 to $316.00, on Mar 29, 2023.

Maintaining his Strong Buy rating, Turits raised his price target on Microsoft Corporation by 17%.

Citing his survey of over 100 SMBs in the first two months of the year, the analyst reported that respondents plan an "optimistic" 3% in tech spend growth in FY 2023.

However, given worsening macro headwinds, the results should be taken with a grain of salt, Turits cautioned.

The survey results showed that SMB public cloud usage is evenly split between Amazon and Google, he continued.

Microsoft is the survey leader in UCaaS*, expense management, and file management, while remaining the second most popular choice for video conferencing behind Zoom, Turits added.

* Unified Communications as a Service.

Ambrish Srivastava, a top 6% analyst from BMO Capital maintains MSFT with a hold rating and raises their MSFT price target from $265.00 to $305.00, on Mar 28, 2023.

Michael Turrin, a bottom 2% analyst from Wells Fargo maintains MSFT with a strong buy rating and raises their MSFT price target from $300.00 to $320.00, on Mar 24, 2023.

Gregg Moskowitz, a bottom 8% analyst from Mizuho maintains MSFT with a strong buy rating and raises their MSFT price target from $300.00 to $315.00, on Mar 17, 2023.

Rishi Jaluria, a bottom 2% analyst from RBC Capital reiterates MSFT with a buy rating and maintains their MSFT price target from $285.00 to $285.00, on Mar 17, 2023.

You can dig deeper into what analysts are saying on the Microsoft stock forecast page.

MSFT Momentum

SMA10
278.1
SMA20
269.12
SMA50
260.43
SMA100
250.72
SMA200
253.25
MACD
7.53
MACD Signal
6.09
MACD Histogram
1.44
RSI
69.15
Stochastic %K
96.18
Stochastic %D
90.1
StochRSI %K
83.2
StochRSI %D
74.88

How are MSFT Revenues/Earnings doing?

Last year, MSFT earnings were $67.45B. During the past 5 year, MSFT's earnings have grown by 38.34% per year. This was faster than the Software - Infrastructure industry average of 32.37%.

Last year, MSFT revenue was $204.09B. During the last five year, MSFT's revenue has grown by 14.82% per year. This was slower than the Software - Infrastructure industry average of 20.34%.

You can analyze MSFT's earnings and revenue performance here.

Who is buying/selling MSFT?

In the past 12 months, executives and large shareholders at MSFT have sold more shares than they have bought.

Judson Althoff, EVP Chief Commercial Officer of MSFT, was the latest MSFT insider to sell. They sold $647,914.40 worth of MSFT shares on Feb 28, 2023.

Get more info about who owns MSFT stock here.

Can I rely on MSFT as an income stream?

Microsoft pays a dividend of 0.9%, compared to the Software - Infrastructure industry's average dividend yield of 1.36%. If you owned $1,000 worth of MSFT stock, you would have received $9.02 in the past 12 months.

Microsoft dividend payments have consistently grown over the past decade and have remained stable.

Find more data about Microsoft dividend yield and history here.

What others are saying about MSFT

One of the major reasons eToro is our highest-rated brokerage is because of its social trading community.

Click below to find out what other traders have to say.

Step 5: Execute your MSFT trade

You have two primary options:

  • Market order: A market order is an order to buy or sell a security at the best available price.
    Market orders are usually fine for most investors.
  • Limit order: A limit order is an order to buy or sell a security at a specific price (or better).
    If you want to be certain you're buying or selling at an exact price, use a limit order.

Click the Open Trade button and your broker will place your order.

If you need more help investing in stocks on eToro, click the how to video below:

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Step 6: Get the latest news on your MSFT position

Now that you own some MSFT shares, you'll want to stay up-to-date on your shares.

Create a watchlist to get notified of important updates regarding your MSFT stock.

MSFT Feed

How to Buy Stock in Microsoft

To reiterate, here are the 6 steps to buy stock in Microsoft:

  1. Figure out where to buy Microsoft stock
  2. Open your brokerage account
  3. Deposit funds into your brokerage account
  4. Evaluate Microsoft stock
  5. Execute your MSFT trade
  6. Get the latest news on your MSFT position

If you require a brokerage, eToro is our recommended option.

Get Started with eToro Today

If you would like to monitor your investment in Microsoft, create a watchlist today.

NASDAQ: MSFT
$288.30+4.25 (+1.5%)
Updated Mar 31, 2023
Open eToro Account
NASDAQ: MSFT
$288.30+4.25 (+1.5%)
Updated Mar 31, 2023
Open eToro Account

FAQ

How much does it cost to buy one Microsoft share?

As of Mar 31, 2023, it costs $288.30 to buy one share of Microsoft stock.

Remember, eToro's fractional share buying allows you to buy partial shares of stocks and ETFs. Even if you only have $100, you can buy 0.347 shares of MSFT.

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Is now a good time to buy Microsoft stock?

According to 27 Wall Street analysts who monitor Microsoft, their consensus recommendation is to buy Microsoft stock.

What is the best way to buy Microsoft stock?

One way to place an order for Microsoft stock is with a brokerage account.
WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.