Analysis of Microsoft share price for trading

The Microsoft Company shares on the stock markets are among the best known assets on the technology stock markets and have made profits for numerous investors due to the amazing rise of the issuing company. It is therefore tempting to invest in these assets through bank stock market product placements or using an online trading platform.   

75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.


General presentation of the Microsoft Company:

The Microsoft Company was created in 1975 in the United States by its founders Bill Gates and Paul Allen who are nowadays renowned as two of the great American leaders in this sector.

The Microsoft Company rapidly claimed its place in the spotlight by becoming number one worldwide in the development and commercialisation of operational systems for computers and software for PCs and servers. Following on from that, Microsoft reaped the benefits of the development of this sector by widening its activities with the creation of Windows Live.

But the success of this company has been somewhat controversial in the past as certain competitors believe that it has abused its position as market leader.

The annual turnover of the Microsoft Company reaches around 58 billion Euros and its net annual profit is around 16 billion Euros.


Major competitors of Microsoft:

The Microsoft Group remains the leader in its primary sector, computer operating systems; its Windows system is still automatically installed on the great majority of computers. However, facing constant technological development and innovation it has become necessary for the company to diversify its activities to face new forms of competition that relate to other parts of the new technology sector.

To better understand which companies may represent a threat to Microsoft in terms of market share we have listed its major competitors throughout the world of which the majority are quoted on the stock markets as you can see.


The major partners of Microsoft:

Microsoft is partnered with several different types of companies throughout the world certain of which are also quoted on the stock markets.

This is notably the case with the Schneider Electric Company with a partnership related to the development of technology aimed at optimising operations and transforming products and services for assimilation with IoT (the Internet of Things).

Another partnership signed with Thales in 2015 is related to the launch of new services enabling the encrypting of sensitive information before being sent by email or storing it in the ‘cloud’.

To conclude, Microsoft announced a partnership with Publicis with the objective of increasing the growth of online and offline data for the benefit of large companies.


Introduction and ranking of Microsoft shares:

It was in 1986 that the Microsoft company was first introduced to the stock market. Today, it is still listed on the American market Nasdaq. Since its introduction, Microsoft shares have move mainly upward, going from 24.31 dollars in a few months in 2005 before falling back to 21.92 dollars in 2006.

A period of price increases followed until December 2007, moment when it reached the level of 37.06 dollars before a new fall in 2008 due to the crisis that would pull its price down to 15.28 dollars, its lowest price in history.

Since then, Microsoft shares have gain several points and reached the price of 28.58 dollars in 2010.

The global market capitalization of this company is now more than 250 billion dollars. It should be noticed that Microsoft securities are part of the Dow Jones US index calculation.


Some advice for trading in Microsoft shares:

The Microsoft Company certainly has a great future ahead and should continue to post excellent profits in the years to come by proceeding with fresh investments in the development of new innovative technologies. It is therefore judicious to speculate over the long term on the profitability of its shares and therefore to buy them through the intermediary of an online bank or financial placement product.

But Microsoft shares are also available to traders using CFDs on the majority of online trading platforms. It is therefore possible to speculate over the short term on their rise and fall in price. To do so, you simply have to analyse the different technological markets, mainly those of computers and mobile telephony.


The important stock market data you should know about Microsoft shares:

To begin trading on the Microsoft share price it is important to know the information above and data relating to the growth and activities of this group. However some basic stock market information about this company is also relevant such as the following:

  • The total stock market capital of the Microsoft Company achieved U.S. $505,998.65 million at the beginning of 2017.
  • The Microsoft share price is currently quoted on the Nasdaq Global Select All Markets stock market in the United States.
  • This company’s share price is also included in the calculation of the Dow Jones Industrial Average American stock market index.
  • The Vanguard Group holds 6.07% of the Microsoft Company shares and BlackRock holds 5.60%. The remainder is held by private and institutional shareholders.

Using the information we have supplied you with here you will be in a position to achieve precise analyses of the growth and movements of the Microsoft share price.


Turnover distribution of the Microsoft Company and its effect on the stock markets:

Here you can learn how the Microsoft Company generates its turnover according to its activity sectors. In fact, this company uses seven products sectors that include the following major products; Client, Servers and Tools, Information Worker, Microsoft Business Solutions, MSN, Mobile and Embedded Devices, and Home and Entertainment.

  • In the Client sector are the Windows operating systems that are increasingly linked to equipment purchase as they are pre-installed on numerous computers.
  • The Servers and Tools sector includes the Exchange server among other things.
  • The Information Worker sector includes office software such as Word and Excel and the distribution of the related licenses.

These three sectors alone generate the major part of the Microsoft Company’s turnover.

Due to the diversity of its products and services Microsoft was able to introduce its shares onto the American Nasdaq stock market on 13th March 1986. The company went on to become the second largest in the world relating to the size of its stock market capital with a value of 408.68 billion U.S. dollars in November 2014.

Since the 1st December 2004 the company has been distributing dividends to its shareholders at $3 per share, notably due to a related tax reduction of 35% to 15% at that time. That same year Microsoft therefore distributed no less than 28 billion dollars to its shareholders.


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How to trade Microsoft shares?

You all know more or less the success story of Microsoft, and by consequence of its shares on the stock market. So why not become part of this big adventure by trading on the price of this action?

Invest in Microsoft now!
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.