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 $416.32, up 0.12% from the previous day, and has increased 25.24% in one year. It has overperformed other stocks in the Software - Infrastructure industry by 0.49 percentage points. Microsoft stock is currently +28.34% from its 52-week low of $324.39, and -11.11% from its 52-week high of $468.35.
There are currently 7.43B shares of MSFT outstanding. The market capitalization of MSFT is $3.09T. In the last 24 hours, 14.08M MSFT shares were traded.
How to Buy Microsoft Stock
Wondering how to invest in Microsoft stock? Here's how.
- 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.
- Open your brokerage account: Sign up for 0% fee trading with the highest-rated brokerage we've selected.
- Deposit funds into your brokerage account: Choose your payment method and add your details.
- 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).
- 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.
- 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.
Our recommended brokerage: eToro
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Open eToro AccountStep 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
- Click here to get started.eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
- Input your personal data to start your new brokerage account.
- Submit your info by pressing the "Create Account" button. Get started with eToro today
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.
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 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 overvalued based on its P/E ratio of 35.1x, relative to Software - Infrastructure industry P/E ratio of 32.96x
- MSFT may be undervalued based on its P/B ratio of 11.53x, relative to Software - Infrastructure industry P/B ratio of 11.87x
- MSFT could be overvalued based on its PEG ratio of 2.63x
You can do more valuation research on MSFT's stock here.
MSFT Financial Summary
Signs that MSFT is financially healthy:
- MSFT earnings of $110.72B is not enough to cover its interest payments.
- There are more short-term assets than short-term liabilities on the MSFT balance sheet.
- There are more short-term assets than long-term liabilities on the MSFT balance sheet.
- MSFT's operating cash flow of $118.55B allows it to safely service it's debt of $67.13B.
- MSFT profit margin has gone up from 34.1% to 36% in the past year.
- Total MSFT debt is lower than 5 years ago, relative to shareholder equity.
Signs that MSFT is not financially healthy:
- MSFT has a relatively high debt to equity ratio of 0.91.
Is Microsoft stock a Buy, Hold, or Sell, according to Wall Street analysts?
Out of 24 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
Karl Keirstead, a top 8% analyst from UBS maintains MSFT with a strong buy rating and lowers their MSFT price target from $520.00 to $510.00, on Jul 31, 2024.
Rishi Jaluria, a bottom 1% analyst from RBC Capital reiterates MSFT with a buy rating and maintains their MSFT price target from $500.00 to $500.00, on Jul 31, 2024.
Michael Turrin, a top 28% analyst from Wells Fargo maintains MSFT with a strong buy rating and raises their MSFT price target from $500.00 to $515.00, on Jul 31, 2024.
Tyler Radke, a top 11% analyst from Citigroup maintains MSFT with a strong buy rating and lowers their MSFT price target from $520.00 to $500.00, on Jul 31, 2024.
Citigroup's Tyler Radke lowered their price target on Microsoft (NASDAQ: MSFT) by 3.8% from $520 to $500 on 2024/07/31. The analyst maintained their Strong Buy rating on the stock.
Microsoft reported its Q4 2024 earnings on2024/07/30.
Colorfully saying that the results "offered something for everyone," Radke detailed a "skinny" revenue and earnings beat, a slowdown in Azure growth, and weaker-than-expected Q1 2025 guidance.
Allowing that there are "fair nits," the analyst said that Citigroup sees Microsoft's leading AI and demand indicators "remaining objectively positive" on 19% Y/Y commercial bookings growth.
Microsoft remains their firm's "top mega-cap pick," Radke added.
Earnings Report
For Q4 2024, Microsoft reported:
- EPS of $2.95, which beat the Zacks Consensus Estimate by 1.72% and, by 9.7%, Q4 2023's $2.69.
- Revenue of $64.73B, which beat the Zacks Consensus Estimate by 0.84% and Q4 2023's $56.19B by 15.2%.
Management did not provide financial guidance in its press release but indicated it would do so on the earnings call.
Chairman & CEO Satya Nadella commented: “The next major wave of computing is being born, as the Microsoft Cloud turns the world’s most advanced AI models into a new computing platform.
“We are committed to helping our customers use our platforms and tools to do more with less today and innovate for the future in the new era of AI.”
CFO Amy Hood added: “We are focused on operational excellence as we continue to invest to drive growth.
"Microsoft Cloud revenue was $27.1B, up 22% (up 29% in constant currency) Y/Y as our commercial offerings continue to drive value for our customers.”
Brent A. Bracelin, a top 1% analyst from Piper Sandler maintains MSFT with a strong buy rating and maintains their MSFT price target from $485.00 to $485.00, on Jul 31, 2024.
You can dig deeper into what analysts are saying on the Microsoft stock forecast page.
MSFT Momentum
How are MSFT Revenues/Earnings doing?
Last year, MSFT earnings were $88.14B. During the past 5 year, MSFT's earnings have grown by 18.34% per year. This was slower than the Software - Infrastructure industry average of 27%.
Last year, MSFT revenue was $245.12B. During the last five year, MSFT's revenue has grown by 14.26% per year. This was slower than the Software - Infrastructure industry average of 17.85%.
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.
Kathleen T. Hogan, EVP Chief Human Resources Off of MSFT, was the latest MSFT insider to sell. They sold $7,156,647.94 worth of MSFT shares on Sep 10, 2024.
Get more info about who owns MSFT stock here.
Can I rely on MSFT as an income stream?
Microsoft pays a dividend of 0.72%, compared to the Software - Infrastructure industry's average dividend yield of 2.22%. If you owned $1,000 worth of MSFT stock, you would have received $7.21 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:
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:
- Figure out where to buy Microsoft stock
- Open your brokerage account
- Deposit funds into your brokerage account
- Evaluate Microsoft stock
- Execute your MSFT trade
- Get the latest news on your MSFT position
If you require a brokerage, eToro is our recommended option.
Get Started with eToro TodayIf you would like to monitor your investment in Microsoft, create a watchlist today.
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