What was Microsoft stock worth in 1986?
Microsoft stock first went public on March 13, 1986 at $21 per share. By the end of the trading day, the price had risen to $28 per share. Now, the price is nearly 13 times higher, closing at $360.69 on Nov. 9.
Microsoft investors had to hold through a decade of stagnation. Microsoft's return is even more impressive than Apple's, as it turned $1,000 invested in its 1986 IPO to $4.1 million now.
Achieving this milestone isn't a walk in the park by any means, but it can be more accomplishable than many realize, thanks to the power of investing and compound interest. A $10,000 investment in Microsoft 30 years ago, at the start of January 1994, would be worth nearly $2.4 million today with dividends reinvested.
The bottom line on Microsoft stock
Have a look at the above chart and you'll see that if you put a grand into MSFT stock two decades ago, today it would be worth more than $24,000. The same amount invested in the S&P 500 20 years ago would theoretically be worth almost $6,500 today.
| Microsoft Historical Annual Stock Price Data | ||
|---|---|---|
| Year | Average Stock Price | Year Low |
| 1989 | 0.2710 | 0.2009 |
| 1988 | 0.2398 | 0.1988 |
| 1987 | 0.2124 | 0.1032 |
This is the ninth time the company has split the stock since Microsoft went public back in March 1986. One original share will equal 288 shares after this split is effective.
Microsoft reached the $1 trillion level in April 2019, 8,351 days after it went public on March 13, 1986, according to Dow Jones Market Data. Another 543 days later, Microsoft reached $2 trillion, hitting that level in June 2021.
| Holder | # of Shares | Type |
|---|---|---|
| SPDR | 240,660,838.00 | Institution |
| Bill Gates | 206,992,934.00 | Insider |
| Fidelity Concord Street Trust | 119,686,108.00 | Institution |
| Invesco | 95,001,296.44 | Institution |
Saving a million dollars in five years requires an aggressive savings plan. Suppose you're starting from scratch and have no savings. You'd need to invest around $13,000 per month to save a million dollars in five years, assuming a 7% annual rate of return and 3% inflation rate.
If you're saving $10,000 a year and have an additional $7,100 you can put into savings, Singh said a high-yield savings account with a 4% interest rate could take you to $100,000 in 10 years.
How long will it take for a $1000 investment to double in size when invested at the rate of 8% per year?
For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.
Microsoft stock (symbol: MSFT) underwent a total of 9 stock splits. The most recent stock split occured on February 18th, 2003.
The highest analyst price target is $230.00 ,the lowest forecast is $175.00. The average price target represents 17.17% Increase from the current price of $178.87. Amazon's analyst rating consensus is a Strong Buy. This is based on the ratings of 41 Wall Streets Analysts.
A $10,000 Investment in Microsoft in 1986 is Worth $39 Million Today!
The highest closing price for Microsoft (MSFT) all-time was $429.37, today. The latest price is $429.37.
As you can see in the chart above, the company hasn't split its stock since February 2003, when the share count doubled for the last time.
Microsoft hasn't indicated any plans for a stock split, but given its robust growth, this may be the year it joins its tech peers in splitting its high-priced shares.
If you don't already have significant portfolio exposure to the gen-AI market, it's not too late to look at Microsoft stock. Even if you have gen-AI exposure in your portfolio, you can still consider investing in Microsoft. The company has created and defended its economic moat through relentless product innovation.
MSFT boasts an average earnings surprise of 8.8%. Earnings for Microsoft are forecasted to see growth of 18.6% for the current fiscal year as well. Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable.
In 1975, he and Allen founded Microsoft in Albuquerque, New Mexico. Gates led the company as its chairman and chief executive officer until stepping down as CEO in January 2000, succeeded by Steve Ballmer, but he remained chairman of the board of directors and became chief software architect.
How much did Bill Gates start Microsoft?
I believe Gates started Microsoft with a $5000 loan from his parents. Not that "immense". Gates did not start Microsoft with a loan from his parents, it was entirely bootstrapped financially. Paul Allen and Gates had saved up a small amount of money from contract work.
- The Vanguard Group – 649,207,002 Shares – 8.7% ...
- Blackrock – 538,937,099 Shares – 7.1% ...
- State Street Corporation (STT) – 288,457,142 Shares – 5.1% ...
- Fidelity (FMR LLC) – 218,838,469 Shares – 2.9% ...
- T Rowe Price Associates – 151,921,031 Shares – 2% ...
- Steven A.
The top shareholders of Microsoft are Satya Nadella, Bradford L. Smith, Kathleen Hogan, Vanguard Group Inc., BlackRock Inc. (BLK), and State Street Corp. Here's a more detailed look at Microsoft's six biggest shareholders.
Both Microsoft and Apple have been trading places for the most valuable public company for years now. Microsoft surpassed Apple's market cap in 2021, 2020, and 2018 before Apple once again regained its place at the top. Google also briefly took over Apple's market cap in 2016.
