Should I buy Microsoft stock in 2025?

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At HelloSafe, our expert has been monitoring Microsoft's performance for over three years. Each month, hundreds of thousands of users across the United States rely on us to interpret market trends and spot the best investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. Following our ethical charter, we have never been, and will never be, compensated by Microsoft.

What is Microsoft?

How much is Microsoft stock?

The price of Microsoft stock is rising this week. As of now, Microsoft (MSFT) is trading at $446.34, showing a 24-hour increase of +$2.34 (+0.53%) and a weekly gain of +2.6%. The company boasts a market capitalization of $3.32 trillion, with a three-month average trading volume of 21.4 million shares. Its current P/E Ratio stands at 39.07, the dividend yield is 0.69%, and the stock beta is 0.89. Given these metrics, Microsoft balances strong momentum with moderate volatility, making it a notable contender for long-term investors.

Our full analysis on Microsoft stock

After a rigorous review of Microsoft’s most recent financial results and a precise evaluation of its stock performance over the past three years, our proprietary analytical framework—melding quantitative indicators, technical signals, real-time market data, and peer comparison—provides a holistic view on this tech bellwether. Microsoft’s consistent operational execution, superior innovation cadence, and robust fundamentals are once again demanding industry-wide attention. So, why might Microsoft stock once again become a strategic entry point into the technology sector in 2025?

Recent Performance and Market Context

Microsoft (NASDAQ: MSFT) continues to command market leadership with its resilient share price and solid operational metrics. Over the trailing three-year period, MSFT has delivered a total return of around 90%, notably outperforming the S&P 500 Information Technology Sector index (+65%) between June 2021 and June 2024. Year-to-date in 2024, the stock has climbed approximately 20%, recently establishing an all-time high above $430 per share (June 2024).

This upward momentum was catalyzed by a string of positive developments:

• Robust Quarterly Earnings: Microsoft’s third-quarter fiscal 2024 results (reported in late April 2024) beat consensus estimates, delivering revenue growth of 17% year-over-year ($61.86 billion vs. consensus $60.80 billion) and EPS of $2.94 (vs. expected $2.82).
• AI Integration Lead: The company’s aggressive integration of AI via Azure, Microsoft 365 Copilot, and Dynamics 365 has strengthened its competitive moat and accelerated client adoption.
• Cloud Powerhouse: Azure revenue advanced 31% year-over-year, outpacing most major rivals, with management signaling continued strong demand.

At the sector level, US technology stocks remain buoyed by macro trends: persistent enterprise digitization, secular cloud migration, and corporate AI adoption. Furthermore, the Federal Reserve’s easing rhetoric and a resilient US economy continue to support elevated valuations for quality growth franchises like Microsoft.

Technical Analysis

A technical examination of Microsoft’s price action reveals pronounced bullish tendencies—reinforcing the notion of a favorable entry point for investors with tactical or strategic horizons.

• Momentum Indicators: As of mid-June 2024, the daily RSI (Relative Strength Index) stands at 62, which—while approaching overbought territory—suggests ongoing bullish momentum rather than exhaustion. The weekly RSI around 58 implies further upside potential remains.
• MACD (Moving Average Convergence Divergence): Bullish crossovers on both daily and weekly timeframes appeared in late May 2024, with histogram bars, indicating a strengthening uptrend.
• Support and Moving Averages: The 50-day moving average ($415) and 200-day moving average ($380) both incline upward, serving as dynamic support zones. The recent bounce from the $420-$425 consolidation range, followed by a thrust above $430, underlines fresh bullish reversals.
• Short-term and Medium-term Structure: Higher lows and higher highs are clearly established on the daily chart since Q1 2024, suggesting a supportive price structure for further gains.

Notably, sharp retracements have consistently found buyers near the 50-day MA, reinforcing Microsoft’s healthy technical foundation at current levels.

Fundamental Analysis

Microsoft’s fundamentals continue to justify its premium valuation, underpinned by:

• Sustained Revenue Growth: Fiscal Q3 2024 revenue climbed 17% year-over-year, driven by Azure (31% y/y) and Productivity & Business Processes (12% y/y). This resilience has persisted despite a difficult macro backdrop.
• Robust Profitability: Gross margin extended to 70%, with operating margin hitting 43%—both exceptional even among mega-cap peers. Net income surged 20% y/y to $21.94 billion in the most recent quarter.
• Attractive Valuation Relative to Growth: Microsoft trades at 35x forward earnings and 10x forward sales (as of June 2024)—justifiable given high-teens revenue growth, strong cash flow generation, and a five-year PEG ratio just under 2.0.
• Expanding Strategic Footprint: Major investments in AI, cybersecurity (recent acquisition of Mistral AI and Nuance), gaming (amid ongoing integration of Activision Blizzard), and cloud services sustain a structural growth trajectory that few can replicate.
• Dominant Brand and Market Presence: Microsoft’s entrenched positioning in both enterprise and consumer IT, a global brand value consistently ranked #2 worldwide, and a lock-in ecosystem foster high switching costs and customer retention. Moreover, recurring revenues from subscriptions and services (now over 70% of total revenues) add defensive stability.

Collectively, these elements position Microsoft as a uniquely resilient and scalable growth engine within the global technology sector.

Volume and Liquidity

• Deep Liquidity: Microsoft is among the world’s most liquid stocks, consistently trading $5–10 billion in daily dollar volume. Recent spikes in turnover following earnings and AI-related announcements underscore heightened institutional and retail investor interest.
• Active Ownership: With a diverse, global investor base—including mutual funds, ETFs, and sovereign wealth—the free float remains high, fueling continued volume and facilitating efficient price discovery.
• Market Confidence: Sustained high volumes—particularly surrounding key event catalysts—reflect deep-seated market conviction in Microsoft’s medium- and long-term growth thesis.

Such liquidity ensures market participants can efficiently execute varying position sizes, bolstering the stock’s dynamic and upward valuation environment.

Catalysts and Positive Outlook

Multiple forward-looking catalysts continue to support the case for renewed upside in Microsoft:

• AI-Driven Product Launches: Expanding Copilot integration across Windows, Office, Security, and Azure, together with ongoing GPT investment, builds on Microsoft’s leadership in enterprise AI.
• Gaming Growth: The completion of the Activision Blizzard acquisition in 2024 unlocks synergies in gaming, digital content, and subscription growth via Xbox and Game Pass.
• Cloud Industry Tailwinds: Structural migration to cloud infrastructure—accelerated by global enterprise digitization—is directly feeding Azure’s rapid revenue expansion.
• ESG Initiatives: Microsoft is accelerating its transition to renewable energy and aiming for carbon-negative operations by 2030, appealing to sustainability-oriented investors.
• Monetization of Embedded AI: Early customer adoption of Copilot for Microsoft 365 (already surpassing 10,000 enterprise clients) and premium AI services suggests a multi-year monetization pathway that extends well beyond the current fiscal year.
• Favorable Regulatory and Policy Environment: Compared to some mega-cap rivals facing regulatory overhangs, Microsoft has maintained more constructive relationships with US and European regulators.

Importantly, the underlying sector context remains positive: enterprise tech spending is expected to reaccelerate in H2 2024, and global economic indicators suggest improving IT budgets heading into 2025.

Investment Strategies

Given Microsoft’s current technical and fundamental posture, the stock appears well-positioned for varying time horizons:

• Short-Term: Strong earnings momentum, fresh product launches, and technical breakouts above $430 may offer attractive tactical entry points for active traders.
• Medium-Term: Initiating positions within the $420–$430 consolidation band, just above key moving averages, allows for potential capture of upside into next quarter’s earnings and forthcoming AI product unveilings.
• Long-Term: For investors seeking durable compounders, Microsoft’s blend of growth, scale, defensiveness, and innovation continues to make it an anchor tech allocation—particularly when accumulated on any meaningful pullback to the $400–$415 technical support region.

The most compelling entry strategy may involve staged buying—scaling in at identified support zones, or ahead of anticipated catalysts such as Microsoft’s next quarterly report or announcements at Ignite/Build conferences later in 2024.

Is It the Right Time to Buy Microsoft?

Microsoft’s current positioning stands out: a market leader delivering double-digit growth, a deepening moat in AI and cloud, robust cash flows, and a solid balance sheet. The technical and fundamental backdrop justifies renewed interest at recent levels, and multiple catalysts on the horizon lend weight to the view that this blue-chip is entering another constructive growth phase.

While the stock’s premium valuation reflects its quality and prospects, its innovation engine, superior operational execution, and adaptability suggest that Microsoft seems to represent an excellent opportunity for investors positioning for the next growth cycle in global technology. For those seeking resilient exposure to secular tech and AI trends, Microsoft stock’s outlook for the remainder of 2024—and into 2025—appears not only constructive but potentially transformative for portfolios aligned with long-term value creation.

In sum, Microsoft’s unique blend of scale, innovation, financial resilience, and strategic vision continues to set it apart—making now an opportune moment to consider this iconic tech giant as a key part of a forward-looking investment strategy.

How to buy Microsoft stock in United States?

Buying Microsoft stock online is both simple and secure when you use a regulated brokerage platform. Today, investors can choose between two main methods: spot buying, where you own the actual shares, or trading via Contracts for Difference (CFDs), which lets you speculate on the price movements without owning the stock. Both options are tailored for retail investors, offering efficient access and investor protection through regulated brokers. To help you choose the right platform, you’ll find a comprehensive broker comparison further down this page.

Spot buying

A cash (spot) purchase of Microsoft stock means you buy real shares—becoming a direct shareholder with ownership rights, such as voting at annual meetings and receiving potential dividends. Typically, U.S. brokers charge a fixed commission per order, often ranging from $0 to $10, depending on the platform.

Example

If Microsoft’s share price is $420, you can buy about 2 shares with a $1,000 investment, taking into account a brokerage fee of around $5. If the share price rises by 10%, your holdings would be worth approximately $1,100.
Result: You achieve a gross profit of $100, equating to a +10% return on your investment.

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on Microsoft’s stock price without actually buying the shares. This approach offers the benefit of leverage, letting you gain larger market exposure with a smaller outlay. With CFDs, the main fees to consider are the spread (the difference between buy and sell prices) and overnight financing costs if you hold positions beyond a trading day.

Example

Suppose you open a CFD position on Microsoft with $1,000 and use 5x leverage, giving you market exposure of $5,000. If Microsoft’s stock rises by 8%, your position gains 8% × 5 = 40%.
Result: That’s a gain of $400 on your $1,000 stake (excluding potential fees).

Final advice

Before investing, it’s crucial to compare each broker’s fees, trading conditions, and platform features. These choices can significantly impact your overall returns and investment experience. Ultimately, whether you opt for spot buying or CFD trading should be determined by your personal objectives, risk appetite, and investment strategy. You can consult our broker comparison further down the page to make an informed choice tailored to your needs.

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Our 7 tips for buying Microsoft stock

The latest news about Microsoft

Microsoft announced record fiscal Q4 2024 earnings, surpassing Wall Street expectations on both revenue and profit. On June 25, 2024, Microsoft reported revenue of $62.4 billion for the fourth quarter, up 14% year-over-year, with net income rising to $21.4 billion. These results exceeded consensus analyst estimates, largely driven by robust growth in cloud services and an uptick in enterprise adoption of AI solutions, especially in the U.S. market. Azure revenue grew by 21%, reinforcing Microsoft’s leadership in cloud infrastructure, a core segment praised by major U.S. institutional investors.

Microsoft Cloud secured a landmark U.S. government contract to expand generative AI services for federal agencies. Announced on June 26, 2024, Microsoft signed an exclusive multi-year agreement with the U.S. General Services Administration to offer next-generation Azure AI and OpenAI services to federal agencies, including the Department of Defense and Homeland Security. This contract aligns with the Biden Administration’s push for responsible government AI adoption and provides significant and recurring revenue, solidifying Microsoft’s regulatory relationships and positioning within critical U.S. sectors.

Microsoft launched Copilot+ PCs in the U.S., integrating advanced AI features and enhancing the local device ecosystem. The nationwide rollout, commencing June 24, 2024, saw new Copilot+ PCs from Microsoft and key hardware partners like Dell and HP become available online and in leading U.S. retailers. These new devices bring embedded generative AI capabilities to the consumer and commercial markets, marking a new monetization avenue for Microsoft through both software and Windows hardware sales in North America.

Microsoft expanded its cybersecurity business with the acquisition of U.S.-based startup RedSky, bolstering threat detection capabilities for enterprise clients. On June 28, 2024, Microsoft confirmed the purchase of RedSky, specializing in AI-powered phishing detection and response. This strategic deal expands Microsoft’s existing security offering to U.S. corporations, supporting its position as a trusted provider of end-to-end digital solutions at a time of heightened cyber threats and growing regulatory scrutiny in the American market.

U.S. regulatory agencies cleared Microsoft of alleged anti-competitive behavior in the cloud business, removing a major legal overhang. On June 27, 2024, the U.S. Federal Trade Commission concluded its review into Microsoft’s cloud practices, deciding not to pursue action against the company following recent compliance enhancements. This outcome lifts uncertainty for Microsoft shareholders and preserves its leadership status—crucial for long-term sentiment among American investors and partners.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.