Microsoft Corp's fundamentals are relatively healthy, with an industry-leading ESG disclosure.and its growth potential is high.Its valuation is considered fairly valued, ranking 11 out of 473 in the Software & IT Services industry.Institutional ownership is very high.Over the past month, multiple analysts have rated it as Buy, with the highest price target at 566.57.In the medium term, the stock price is expected to remain stable.The company has been performing well in the stock market over the past month, which is supported by its strong fundamentals and technicals.The stock price is trading sideways between the support and resistance levels, making it suitable for range-bound swing trading.
Media Coverage
Headquartered in Redmond, Washington, Microsoft Corporation operates as an American multinational technology conglomerate. Founded in 1975, the firm gained prominence in the personal computer revolution through software like Windows and has since expanded into internet services, cloud computing, video gaming, and other domains. Recognized as the world’s largest software provider, one of the most valuable U.S. public enterprises, and a globally iconic brand, Microsoft shapes the tech landscape.
Co-founded by Bill Gates and Paul Allen to develop and market BASIC interpreters for the Altair 8800, Microsoft emerged as a dominant force in PC operating systems with MS-DOS in the mid-1980s, succeeded by Windows. Between 1980 and 2021, the company released nine MS-DOS versions (median interval: 2 years) and thirteen Windows versions (median interval: 3 years). Its 1986 IPO and subsequent stock growth created three billionaires and approximately 12,000 millionaires among employees. Since the 1990s, it has diversified beyond operating systems. Steve Ballmer succeeded Gates as CEO in 2000, overseeing the 2011 acquisition of Skype Technologies (then Microsoft’s largest deal), a hardware push leading to the 2012 debut of its in-house Surface PCs, and the formation of Microsoft Mobile through Nokia.
Under Satya Nadella’s leadership (since 2014), Microsoft shifted focus to cloud computing, highlighted by the $26.2 billion 2016 acquisition of LinkedIn. Nadella also expanded gaming, establishing the Microsoft Gaming division in 2022 and acquiring Activision Blizzard for $68.7 billion in 2023, reinforcing Xbox’s global presence.
Since the 1990s, Microsoft has dominated IBM PC-compatible OS and office software markets. Notable products include Windows OS, Microsoft Office/Microsoft 365 (featuring Word, Excel, PowerPoint), Surface PCs, Xbox consoles/network, and services like Bing, MSN, Outlook.com, and Microsoft Store. In enterprise/development, it offers Azure cloud, SQL Server, and Visual Studio.
Counted among the Big Five U.S. tech giants (with Alphabet, Amazon, Apple, Meta), Microsoft hit a $1 trillion market cap in April 2019, the third U.S. firm to achieve this milestone. While criticized for monopolistic practices and software usability/security issues, its innovations continue to define industry standards.
The current financial score of Microsoft Corp is 7.45, ranking 193 out of 473 in the Software & IT Services industry. Its financial status is stable, and its operating efficiency is average. Its latest quarterly revenue reached 82.89B, representing a year-over-year increase of 18.30%, while its net profit experienced a year-over-year increase of 23.06%.
Key Metrics
The current valuation score of Microsoft Corp is 8.10, ranking 126 out of 473 in the Software & IT Services industry. Its current P/E ratio is 24.97, which is 58.47% below the recent high of 39.57 and 10.95% above the recent low of 22.23.
The current earnings forecast score of Microsoft Corp is 8.57, ranking 31 out of 473 in the Software & IT Services industry. The average price target is 630.00, with a high of 730.00 and a low of 444.65.
Data disclaimer: Analyst ratings and target prices are provided by LSEG for informational purposes only and do not constitute investment advice.
The current price momentum score of Microsoft Corp is 9.41, ranking 77 out of 473 in the Software & IT Services industry. Currently, the stock price is trading between the resistance level at 446.30 and the support level at 382.63, making it suitable for range-bound swing trading.
The Indicators feature provides value and direction analysis for various instruments under a selection of technical indicators, together with a technical summary.
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Please note that technical analysis is only part of investment reference, and there is no absolute standard for using numerical values to assess direction. The results are for reference only, and we are not responsible for the accuracy of the indicator calculations and summaries.
The current institutional shareholding score of Microsoft Corp is 7.00, ranking 132 out of 473 in the Software & IT Services industry. The latest institutional shareholding proportion is 75.91%, representing a quarter-over-quarter increase of 0.06%. The largest institutional shareholder is The Vanguard, holding a total of 686.49M shares, representing 9.24% of shares outstanding, with 0.21% decrease in holdings.
The U.S. Dollar Index is currently in a neutral state, which has a neutral effect on the Software & IT Services domestic-focused industry. The Dollar Index (DXY) measures the value of the U.S. dollar against a basket of major currencies, including the euro, yen, pound sterling, Canadian dollar, Swedish krona, and Swiss franc. The current risk assessment score of Microsoft Corp is 9.20, ranking 8 out of 473 in the Software & IT Services industry. The company's beta value is 1.09. This indicates that the stock tends to outperform the index during upward trending markets but experiences larger declines during downward trending markets. with an industry-leading ESG disclosure.
