Microsoft Net Worth: – Microsoft was founded in 1975 by Bill Gates and Paul Allen in Albuquerque, New Mexico. Their initial goal was to create software for the Altair 8800, an early personal computer. The name “Microsoft” is a combination of “microprocessors” and “software.”
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By 1980, the company secured a deal to provide the operating system for IBM computers, marking a significant milestone in its growth. In 1985, Windows was released, revolutionizing the computer industry.
Table of Contents
| ABOUT MICROSOFT | |
|---|---|
| Headquarters | Redmond, Washington |
| Year Founded | 1975 |
| Founders | Bill Gates and Paul Allen |
| CEO | Satya Nadella |
Microsoft’s Current State
Microsoft, headquartered in Redmond, Washington, is currently led by CEO Satya Nadella. As of August 2023, its share price ranged from $213.43 to $366.78, with a fiscal year 2023 revenue of $211.9 billion and shareholders’ equity of $206.2 billion. GOBankingRates’ evaluation of Microsoft’s net worth is approximately $646.6 billion. It’s important to note that Microsoft reached the $2 trillion valuation mark, making it one of the world’s most valuable companies.
Market Capitalization
Market capitalization, often referred to as “market cap,” measures a company’s value by multiplying the number of outstanding stock shares by its current market price. Microsoft had 7.44 billion shares outstanding in August 2023, with a closing stock price of $327.78, resulting in a market capitalization of about $2.44 trillion. Market cap helps investors compare companies’ sizes regardless of their share prices but does not consider financial metrics like earnings per share.
Limitations of Market Cap
Market cap has drawbacks, such as its frequent fluctuations tied to share prices. It doesn’t account for financial metrics like earnings, growth rate, or book value. The price-earnings ratio (P/E ratio) is another popular valuation method, considering a company’s earnings. Microsoft’s P/E ratio stands at 35.78.
Microsoft’s Market Cap
Microsoft’s market cap fluctuates based primarily on its share price. As of August 7, 2023, Microsoft’s market cap stood at $2.45 trillion. Share price changes can result in a wide valuation range for the company.
Microsoft Net Worth
$205.75 billion
While market cap measures a company’s total value, net worth is calculated by subtracting liabilities from assets. Microsoft’s net worth as of June 30, 2023, was $205.75 billion. GOBankingRates’ valuation method, considering assets, revenue, and profits, estimates Microsoft’s net worth at $646.6 billion, which some investors find more compelling than market cap.
| MICROSOFT’S WORTH | |
|---|---|
| Share Price, 52-Week Range | $213.43 – $366.78 |
| Fiscal Year 2023 Revenue | $211,915,000,000 |
| Shareholders’ Equity | $206,223,000,000 |
| GOBankingRates’ Evaluation of Microsoft’s Net Worth | $646,551,833,333 |
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Founders: Bill Gates and Paul Allen
Bill Gates and Paul Allen, who met in the late 1960s in Seattle, co-founded Microsoft. They were passionate about computers and founded the company when they saw the potential of the Altair 8800 computer.
Key Product Lines
Microsoft’s revenue is generated from three main segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. These include products like Microsoft Office, LinkedIn, Azure, and Windows.
Revenue by Segment (Q4 2023)
In the fourth quarter of fiscal year 2023, Microsoft reported revenue of approximately $56.2 billion. This revenue was distributed across its segments as follows: Productivity and Business Processes ($18.3 billion), Intelligent Cloud ($24 billion), and More Personal Computing ($13.9 billion).
Top Shareholders
Microsoft’s top shareholders are asset managers and mutual fund companies. Institutional shareholders collectively own 73.21% of all Microsoft shares. The top shareholders include The Vanguard Group, BlackRock Inc., and State Street Corp.
Bright Future for Microsoft
Microsoft’s future looks promising. Recent trends indicate strong performance, with Q4 2023 revenue and earnings surpassing analysts’ expectations. Microsoft anticipates growth in its Productivity and Business Processes and Intelligent Cloud segments, although More Personal Computing may face challenges due to declining Windows revenue and device sales.
Analyst Ratings and Target Price
Analysts on Yahoo Finance mostly rate Microsoft as a “buy” or “strong buy,” with an average target price of $387.08, representing a potential 17% increase from its current price.
Considering Investment in Microsoft
While Microsoft is a profitable and significant company, individual investment decisions depend on personal financial situations, risk tolerance, and investment objectives. Consulting a fiduciary financial advisor can help assess whether investing in stocks, including Microsoft, aligns with your financial goals.
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FAQs
1. What is climate change?
- Climate change refers to long-term shifts in temperature, weather patterns, and climate conditions on Earth. It is primarily driven by human activities, such as the burning of fossil fuels and deforestation, which release greenhouse gases into the atmosphere, leading to global warming and various environmental impacts.
2. How does a credit score work?
- A credit score is a numerical representation of an individual’s creditworthiness. It is calculated based on factors like payment history, credit utilization, length of credit history, types of credit accounts, and recent credit inquiries. Lenders use credit scores to assess the risk of lending money to borrowers.
3. What is the difference between a virus and malware?
- A virus is a type of malware (malicious software) that attaches itself to legitimate programs or files and can replicate and spread to other files and computers. Malware is a broader term that encompasses various types of harmful software, including viruses, Trojans, spyware, and ransomware.
4. How does cryptocurrency work?
- Cryptocurrency is a digital or virtual form of currency that uses cryptography for security. It operates on a decentralized ledger called the blockchain, which records all transactions across a network of computers. Cryptocurrencies like Bitcoin enable peer-to-peer transactions without the need for intermediaries like banks.
5. What is artificial intelligence (AI)?
- Artificial intelligence refers to the simulation of human intelligence in machines and computer systems. AI technologies aim to perform tasks that typically require human intelligence, such as learning, problem-solving, speech recognition, and decision-making. AI is used in various applications, including autonomous vehicles, virtual assistants, and predictive analytics.
