MICROSOFT (MSFT) Stocks
📊 American Microsoft Corporation is a multinational technology company. The company develops, manufactures, supports, licenses and sells items such as consumer electronics, personal computers and computer software.
📊 Microsoft’s most well-known computer software products are the Microsoft Windows operating systems, the Internet Explorer and Edge Web browsers as well as Microsoft Office Suite. The company’s flagship hardware products are the Microsoft Surface line-up of touchscreen personal computers and the Xbox video game consoles.
📊 Microsoft Corporation is one of the world’s most valuable companies and the largest software maker by revenue since 2016. The company’s history dates back to 1975 when it was founded and today its headquarters is in Redmond, Washington in the United States.
📊 It employs approximately 135 000 employees.
OVERVIEW OF MICROSOFT
- “Microsoft” is a portmanteau of “microcomputer” and “software”. Bill Gates and Paul Allen founded the company in April 1975. The company develops and sells BASIC interpreters for the Altair 8800. In the mid 1980’s it dominates the personal computer operating system market with its MS-DOS system which is followed by Microsoft Windows. Microsoft’s initial public offering is in 1986 and through its rise in share price it creates three billionaires and approximately 12 000 millionaires amongst its employees.
- The company starts diversifying from operating systems to corporate acquisitions from the 1990’s and buys LinkedIn for the price of $26.2 billion and Skype Technologies for $8.5 billion. The company dominates the IBM PC compatible operating system and office software suite markets as of 2015 – but loses the majority of the overall operating system market to Android. Microsoft broadens its portfolio with a wide range of further enterprise and consumer software for servers and desktops. These include the digital services market (through MSN), internet search (with Bing), cloud computing (Azure) and mixed reality (HoloLens).
- Microsoft buys Danger Inc. in 2008 leading the company into a devices and services direction. In June 2012 the company launches its Microsoft Surface line of tablet computers. Its Microsoft Mobile follows after buying Nokia’s devices and services division. In 2014 Microsoft starts scaling back on hardware and starts focussing on cloud computing.
- Microsoft surpasses Apple Inc. as the most valuable publicly traded company in the world in 2018 after being dethroned by Apple in 2010. Microsoft becomes the third U.S. public company to be valued at more than $1 trillion in April 2019. This after Amazon and Apple reached the trillion-dollar market cap in 2018.
- In the 2018 Fortune 500, Microsoft Corporation is ranked No. 30 in the rankings of the largest United States corporations by total revenue.
- In May 2019 Microsoft Corporation announces the opening of the company’s first Africa Development Center in Kenya and Nigeria. Engineers have already started working and the company intends to recruit 100 full-time engineers by the end of 2019 – expanding to 500 across the two sites by 2023.
VALUES OF MICROSOFT
- Microsoft’s mission is to empower every person and every organization on the planet to achieve more. This is achieved through, amongst others, by having more than a thousand researchers in the company’s laboratories – constantly developing and researching new products.
- The company values diversity and inclusion by maximising each employ and customer’s contribution so that innovation can include diverse thought. Microsoft believes in conducting business that is inclusive, transparent and respectful of human rights.
- Microsoft is committed to sustainability through accelerating global progress and creating a more sustainable future. Since 2012 the company has been operating carbon neutral across the word. The aim is to help reduce its own global carbon emissions with its internal carbon tax and going beyond through policy support and new cloud tools.
- The company has also directly purchased more than 1.4 gigawatts of new wind and solar energy in its commitment to using more clean energy to power its datacenters and operations.
MARKET PERFORMANCE OF MICROSOFT
- Microsoft Corporation trades on the New York Stock Exchange under the NYSE Stock Symbol “MSFT”.
- In 2018 the company’s revenue is US$110.36 billion. The company’s operating income for the same year is US$35.05 billion. Its net income is US$16.57 billion with total assets being US$258.84 billion and total equity US$82.71 billion.
LATEST NEWS MICROSOFT
Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy MICROSOFT Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN MICROSOFT STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a $5 stock, multiply 100 by $5 to get $500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE MICROSOFT STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of MICROSOFT stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy MICROSOFT stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?