Magnificent 7 series: What will the Microsoft stock price be worth by 2030?

Predicting where a company’s stock price will be in a year – let alone more than half a decade – is an imprecise business.

Nevertheless, investing in stocks requires long-term thinking.

So we’ve started a series, looking at every Magnificent 7 stock and what it may be worth by 2030.

First up on our list is the company that The Motley Fool thinks will be the world’s first ever $10 trillion-dollar company: Microsoft.  

Microsoft – the 10x returner

“Microsoft, as the oldest listed stock among the Magnificent 7, offers a substantial price history. It has enjoyed a remarkable bull run since 2015, yielding a tenfold return for investors,” says Invezz analyst Ritesh A. 

In fact, during the last five years, Microsoft’s price has soared 214.7% at the time of this article going to press – which theoretically works out to an average of roughly 43% per year.

But only about 23% of that has been in the past year specifically.

Microsoft in 2024 so far

This year to date, the Microsoft stock price is up by over $42 dollars in 2024 so far But, with the year basically halfway through, that’s just 11.5% increase so far, at the time of this article’s writing.

During the past year, which was ruled by the so-called ‘Magnificent 7’ stocks, Microsoft’s share price rose by over $77, over 23%, while some of the seven did far worse.

This was exemplified by the news that Microsoft recently became the largest company in terms of market cap on the Russell 1000 index recently, dethroning Apple from the top spot for the first time since 2020.

So, while Microsoft Corporation increased its market capitalization by around 27% in the past year, Apple Inc. actually lost market cap, falling 2% to $2630 billion.

Microsoft stock price to plateau soon?

Ritesh A, interestingly enough, sees the Microsoft stock price plateauing for some time before it makes another significant gain.  

History shows Microsoft can also stay at the same level for a long time. After reaching a high near $60 (where it delivered more than tenfold returns) at the end of 1999, after going through a staggering bull run between 1994 and 1999, it took Microsoft’s stock more than 15 years to surpass that level.”

A $320-$480 range

And Microsoft’s history is about to repeat itself with some range-bound trading for quite some time, says Ritesh:

I foresee a similar pattern unfolding, with Microsoft’s stock potentially remaining stagnant in terms of price growth for the next decade, with dividends being the primary source of returns for investors. And although I don’t see the stock dropping more than 50% like it did during the Dotcom crash, I think it will largely remain in this $320-$480 range over the next decade.”