How to buy Microsoft (MSFT) shares
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This beginner friendly guide explains everything you need to know before investing in Microsoft shares. We take a brief look at its history, its recent market performance, and compare the best platforms to use to buy its shares. Read on to learn more.
Where to buy Microsoft stock
You can get started on the market straight away by visiting one the brokers below. We’ve assessed all the best platforms to come up with this list, so you can be confident in whichever one you choose. Otherwise, keep reading for more information on Microsoft.
How to buy Microsoft stock, a step-by-step guide
It’s relatively simple to get your hands on Microsoft shares, even for the most inexperienced investor. The following list explains the steps you need to take to make your first investment.
Choose a broker and create an account
The first step is to select a broker. You can use our comparison table above to help you decide. Once you’ve chosen your broker, simply head over to their website and follow the steps to create an account.
Decide how much to invest
Budget is key and it’s important to split your portfolio across a range of investments. Well known companies like Microsoft are generally safer bets compared to smaller businesses so you could allocate a bigger portion to it.
Research Microsoft and its potential
Before you go ahead and buy Microsoft stock you should take the time to research it. You can look at things like its financial reports on its investor relations website to judge how well its performing.
Place an order for MSFT stock
Now you’ll be ready to place your order. Head over to your broker and search for the ticker symbol MSFT. You will be taken to the Microsoft trading page where you can enter how many shares you want to buy and at what price.
Execute your order
Your order will usually be executed immediately, however there may be a slight delay, especially if you place it outside of market hours. Once it is executed you’ll be able to monitor it in the open positions section of your brokerage account.
Review your investment regularly
It is recommended that you monitor your investment at regular intervals. The stock market can move up and down very quickly and keeping tabs on your open positions is a good way to stay on top of any potential volatility.
What is Microsoft? And should I invest?
Microsoft (NASDAQ: MSFT) is an American technology company, the largest software maker in the world and one of the big five US tech companies in the US along with Amazon, Apple, Facebook and Google. Founded by Bill Gates and Paul Allen in 1975, it has grown to dominate the PC operating system market and is a diverse ‘big tech’ company.
Its underlying strength has been helped in recent years by Microsoft moving away from just operating systems and hardware by acquiring LinkedIn and Skype, along with investing in its gaming division and Azure cloud software offering. That has softened the blow of competition from other firms like Google and Apple, who have been able to win a greater market share of mobile operating systems.
Microsoft has almost always been a good investment and its performance in recent years in particular is extremely strong. That doesn’t guarantee its future success, Microsoft shares are on the expensive side with the stock at a high value relative to its earnings, but it is a company set up well to deal with the challenges of the future.
How has the company performed in recent years?
Microsoft has been a good investment for some time but since 2015 its price has been on a steep increase. In recent years it has seen demand for cloud services rise to make up a third of its entire revenue – even before the pandemic hit – while traditional software continued to perform strongly.
Microsoft’s unique position where it is able to offer ‘hybrid’ software solutions has helped its price increase by over 500% between 2015-2021. The pandemic hurt its hardware and traditional desktop computing revenue and it fell briefly in the aftermath, but the scale of working and learning from home was a big boost to the tech industry as a whole.
In January 2022 it announced a deal to purchase video game publisher Activision Blizzard for $68.7 billion. The deal is expected to finalise at some point in 2022 and will strengthen its grip in the gaming industry, where it is already a big player through its XBox console.
Is it a good time to buy Microsoft shares now?
Microsoft has rarely been a bad investment, its long history of stable leadership combined with strong revenue streams and a varied portfolio have kept it at the technological forefront for a long time. The pandemic only accelerated a move to cloud computing and it continues to develop its Azure platform to offer flexible cloud hosting and storage.
2022 has seen bearish conditions prevailing in the stock market and Microsoft has experienced its price dropping too. The first five months of 2022 has seen around 20% wiped off its value. However, giant companies like Microsoft tend to perform well over the long term and savvy investors could use these bearish conditions as an opportunity to buy the dip.
There could also be chances for short term traders based on Microsoft’s price trends, with growth accompanied by spells where the stock meets resistance and drops down to support levels before returning to an upward trend. You can find our more extensive fundamental analysis below, along with all the latest news from Microsoft and its big tech competitors.
Ways to invest in MSFT
- Buy Microsoft shares. Buying Microsoft shares is the easiest way to invest in it. When you buy shares you own a piece of the company and your investment will rise and fall inline with its performance.
- Invest in Microsoft ETFs. Exchange traded funds are an easy way to invest in Microsoft. ETFs invest in different sectors, geographies, or follow a particular index. There are lots of technology ETFs where MSFT is a major holding.
- Invest in Microsoft funds or trusts. Funds are similar to ETFs but are managed by a professional who buys and sells according to their own experience. Technology and blue chips funds tend to include MSFT stock.
- Trade Microsoft. If you prefer to speculate on its short term price movements you may want to consider trading. When trading there is more technical information to consider like its price charts and volatility.
- Spread betting. Spread betting is another way to trade short term price movements. One key benefit of spread betting is that any profits you make are free from tax. However with spread betting you don’t actually own any MSFT shares.
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