Microsoft Stock Price (MSFT)

About Microsoft

Microsoft is an American multinational corporation that has grown to be the largest computer software seller in the world. The company specialises in cloud computing, video gaming, computer hardware, and an array of online services. It's best known for its Windows product line, Microsoft Office 365 software and web browsers, Internet Explorer and Edge.

Founded in 1975 when Harvard University classmates Bill Gates and Paul Allen put their heads together to develop the Altair 8800 (a primitive early computer), Microsoft has gone from a peer project to a household name. Nowadays, Microsoft is considered one of the 'Big Five' tech companies alongside Alphabet (the parent company of Google), Meta, Apple, and Amazon. With an estimated net worth of $2,385 billion, it's no surprise that Microsoft is the ninth largest company in the world according to the Forbes 2023 Global 2000 rankings. Its headquarters can be found in Redmond, Washington.

What stock exchange is Microsoft traded on?

Although Microsoft is one of only a few companies to have reached a market capitalisation of over $1 trillion, it hasn't always been this successful.

When Microsoft (MSFT) went public in March 1986, the original trading price was $21 and there was a market cap of less than $700 million. In other words, Microsoft was a small-cap stock. Fast-forward a few decades and Microsoft is listed on the NASDAQ Global Select Market under the ticker symbol 'MSFT'.

What affects Microsoft (MSFT) stock prices today?

Despite being one of the 'Big Five', Microsoft has share price fluctuations too. Familiarising yourself with the influences that cause stock prices to rise and fall will help you seize trading opportunities.

As well as the fundamental factors, here are external influences that can impact Microsoft's stock price:

• Financial performance: Income, revenue and the quarterly financial reports sway Microsoft's share price. For example, shortly after JP Morgan analysts predicted Microsoft would make $10 billion in AI revenue in June 2023, its stock prices hit a record high.
• Market demand: With AI adoption set to increase, tech giants such as Microsoft are benefitting from a high global demand for specialist software.
• Competition: Fierce competition is a looming threat for the Big Five, including Microsoft. With newer AI-centric companies hot on the heels of longstanding tech corporations, this might cause Microsoft stock prices to fall.
• Current affairs: New developments or monumental events can impact investor sentiment and, therefore, Microsoft stock prices. New regulations involving the use of AI or personal data could cause Microsoft share prices to plummet.
• Company activities: Exciting product launches, new company acquisitions and leadership changes can all cause the price of Microsoft shares to fluctuate.

How to invest in Microsoft stocks?

There are plenty of ways you can invest in Microsoft. The route you should go down is the one that works best with your wider trading strategy.

The quickest, easiest way to invest in Microsoft is by acquiring stock directly. Well-suited to novice traders, adding Microsoft stocks to your portfolio lets you reap the benefits of strong performance without having to worry about fixed timescales or excessive risk. All you need to do is keep an eye on Microsoft stock performance, buying or selling as you see fit. With this type of trading, you can keep positions open for hours, weeks, months or even years, if you wish.

Trading Microsoft stocks

Buying shares in Microsoft isn't the only way to trade. Financial derivatives like contracts for difference (CFDs) allow you to speculate on Microsoft's price movements – whether the market is bullish or bearish. All without ever owning the underlying shares.

One of the benefits of using derivatives to trade Microsoft stocks is that you can use leverage. Trading using leverage means you can use a small deposit to open a large position. As well as magnifying your profits (and losses!), using leverage frees up capital so you can make other trades simultaneously.

Understand the intricacies of Microsoft derivative trading using our expert guides:

Leverage trading guide

Is trading Microsoft stock right for me?

Pros of trading Microsoft stocks

Rookies and trading veterans alike invest in Microsoft stocks. Here's why:

• Volatility: Microsoft share prices today move continuously. It might sound like a bad thing, but volatility creates trading opportunities. Do your research and you can use price swings to your advantage.
• Trade in either direction: Financial derivatives such as CFDs mean you can speculate on price movements in bullish and bearish markets.
• You can use leverage: At Tradu, we offer leverage of up to 1:5. As you'll get access to giant positions with minuscule deposits, you'll have capital left over to execute more trades.
• Ample news coverage: Unlike niche markets, Microsoft's performance is newsworthy. This means that missing crucial updates that could harm your trade is less likely.

Cons of trading Microsoft stocks

• More leverage = more risk: Using leverage to execute trades is a risky strategy. As you're exposed to the full position size, your losses can be amplified if the market moves against you. It's essential to assess your risk appetite and put risk-management strategies in place before you open a position.
• Volatility: Microsoft stocks are great. A diverse portfolio is even better. To hedge your bets against risk, include a mix of large and small-cap stocks in your portfolio, as well as other asset classes.

How to start trading Microsoft stocks with Tradu

1. Open a trading account today: Opening an account with Tradu only takes a couple of minutes. We'll take basic details from you and once you've been approved, you can start trading in minutes.
2. Decide your strategy: Assess your goals, risk tolerance and available capital before choosing your strategy.
3. Study the market: Study our live price charts and historical data trends. Then swoop in on the best opportunities using our lightning-fast tools.
4. Execute a trade: Armed with an opportunity and a trading strategy, it's time to make a trade. Open your position and keep a watchful eye on our live price charts to determine your exit point.
5. Speak to the experts: Our trading experts are on hand to help with trading or account queries 24/5. We have an extensive collection of free trading guides in our resources hub, too.
6. Diversify your portfolio: Don't concentrate your efforts on a single area. Add different asset classes to your portfolio to protect your investments.