Dr.Sam

Investing in technology stocks remains a profitable venture in the stock market. The revolution in technology has led to several tech companies, including Microsoft, gaining traction in the stock market. As one of the oldest tech companies in the world, Microsoft has shown consistent growth over the years. This article will look at the highs and lows of investing in Microsoft, analyzing different factors such as stock performance, market conditions, and innovations.
Background of Microsoft
Founded in 1975 by Bill Gates and Paul Allen, Microsoft Corporation is one of the largest technology companies in the world. The company’s initial focus was on personal computers, with the development of the first operating system, MS-DOS, in 1981. Today, Microsoft is a multinational company that develops, produces and sells hardware, software, and market services for personal computers and mobile devices.
Highs in Investing in Microsoft
Microsoft has seen tremendous growth in the past decade, with its stock price rising by more than 500%. This growth was fueled by several factors, including the increase in the adoption of cloud technology, which led to the development of Microsoft Azure. Microsoft Azure is one of the leading cloud computing platforms on the market, accounting for more than 19% of the $100 billion cloud computing market share.
Furthermore, the company’s acquisition of LinkedIn in 2016 has helped Microsoft to build its footprint in the digital advertising and social networking market. LinkedIn is the world’s largest professional networking site, with more than 700 million users in over 200 countries. This means that the acquisition has the potential to boost Microsoft’s revenue through ads and job listings.
Microsoft’s stock also rose by more than 30% in 2020 due to the COVID-19 pandemic, which led to the increased demand for digital services globally. As more people work and learn from home, Microsoft’s products such as Microsoft Teams, Windows, and Office 365 became essential tools for both enterprise and consumers across the world.
Lows in Investing in Microsoft
While Microsoft has seen significant growth over the years, it has not been without its challenges. In 1998, the US Department of Justice sued Microsoft for anti-competitive practices, including bundling its web browser, Internet Explorer with its operating system, Windows. Despite these challenges, the company has managed to overcome them and continue growing its business.
Investors should also be cautious of potential impacts on the stock price due to factors such as global economic challenges, changes in government regulations and consumer preference. Moreover, with the increase in competition from companies such as Google and Amazon, it is important to stay updated on the company’s product offering and innovations.
Conclusion
Investing in Microsoft offers investors an opportunity to benefit from the growth of a tech giant that has a proven track record of success. The company’s growth in recent years has been driven by its investment in cloud technology, acquisitions such as LinkedIn, and increased demand for digital services during the pandemic. However, investors should remain cautious of potential market volatility and consider the risks associated with investing in a technology-based company.