Microsoft stock has made many millionaires, with potential for future growth and innovation

From Nasdaq: 2024-11-29 06:45:00

Microsoft (NASDAQ: MSFT) has been a stock that created many millionaires, with a $10,000 investment in 1994 now worth over $1 million. Despite starting as the largest company in the S&P 500, its market cap has grown to over $3 trillion. Azure, its cloud computing division, and AI innovation have been key factors in its success.

Azure, Microsoft’s cloud computing division, saw a 33% revenue increase last quarter, with growth limited by capacity constraints. The company’s shift to a SaaS model with Microsoft 365 has also been successful, especially with the introduction of AI copilots. These copilots are generating significant revenue for Microsoft at $30 per month per user.

Microsoft’s forward P/E ratio is just over 28, indicating potential for growth. The company’s adaptability and focus on AI innovation could drive future success. While not a stock for small investments, Microsoft can be a solid addition to a portfolio aiming to create millionaires.

The Motley Fool Stock Advisor team did not include Microsoft in their list of 10 best stocks for investors to buy now. However, the service has a track record of outperforming the S&P 500 since 2002. Investors can access guidance on portfolio building and receive two new stock picks each month through the Stock Advisor service.



Read more at Nasdaq: This Magnificent Stock Made Many Millionaires, and Could Make More