Should I buy Microsoft stock in 2025?

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At HelloSafe, our expert has been monitoring Microsoft's performance for over three years. Every month, tens of thousands of users in Singapore rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by Microsoft.

What is Microsoft?

How much is Microsoft stock?

The price of Microsoft stock is on the rise this week. As of the latest close, Microsoft (MSFT) is trading at USD 446.34, up 1.62% over the past 24 hours and climbing 2.05% this week.

The company's market capitalization is USD 3.32 trillion, with a 3-month average volume of 22.1 million shares.

Microsoft’s current P/E ratio stands at 38.12, reflecting strong earnings. The dividend yield is 0.72%. The stock’s beta is 0.89, which suggests moderate volatility. This makes Microsoft stock appealing for Singapore investors seeking growth with relative stability.

Our full analysis on Microsoft stock

We have reviewed Microsoft Corporation’s latest quarterly and annual financial results in detail, alongside its three-year stock performance, through the lens of our rigorous multi-factor analysis. By combining proprietary financial screening, technical trend identification, and a comparative assessment against leading sector competitors, we offer an integrated and objective perspective on Microsoft’s current positioning. Given the evolving macroeconomic conditions and sectoral tailwinds, one pertinent question emerges: What makes Microsoft potentially a strategic gateway into global technology leadership as we look toward 2025?

Recent Performance and Market Context

Stock Price Movement – Sustained Outperformance

Over the past three years, Microsoft (NASDAQ: MSFT) has delivered a robust annualised return of approximately 21%, decisively outperforming both the S&P 500 and the broader Nasdaq indexes. As of 29 May 2024, the stock trades near all-time highs at USD 420, having advanced over 17% year-to-date (YTD), compared to around 9% for the Nasdaq-100. Critically, Microsoft’s share price has shown remarkable resilience, bouncing back swiftly from recent macro-driven consolidations and maintaining a high-beta positive correlation to the ongoing AI and cloud computing boom.

Catalytic Events in 2024

• Fiscal Q3 2024 (reported April 25, 2024) produced revenue of USD 61.86 billion (+17% y/y), with net income at USD 21.94 billion (+20% y/y) – both comfortably surpassing consensus estimates (source: MSFT IR, Bloomberg).
• Azure, Microsoft’s flagship cloud offering, grew at a striking 31% y/y, cementing the company’s relevance in the generative AI stack arms race.
• Recent public announcements on deeper integration of OpenAI technologies into Microsoft 365 Copilot and Azure exemplify its first-mover advantage in AI-powered productivity.

Favorable Macro and Sectoral Tides

The global shift towards cloud-native, AI-powered infrastructure remains a pronounced structural driver favoring platforms like Azure. Additionally, with US interest rates potentially poised to stabilize or decline within the next 12 months, capital flows are rotating back into high-quality technology names. In Asia, and specifically Singapore, Microsoft’s regional cloud expansions and partnerships (e.g., with Temasek and Singapore’s Infocomm Media Development Authority) highlight local tailwinds that strengthen its Asia-Pacific investment appeal.

Technical Analysis

Bullish Momentum and Technical Structure

Our proprietary technical models—utilizing RSI, MACD, and moving averages—signal a constructive backdrop for Microsoft:

• The 50-day moving average (currently ~USD 415) has acted as firm support post-earnings, with the 200-day at ~USD 385 reinforcing secular uptrend integrity.
• Relative Strength Index (RSI) oscillates in the 57–64 band, suggesting mild overbought conditions but not at extremes that typically precede sustained pullbacks.
• MACD remains in bullish territory, with the histogram widening post-recent earnings, indicating persistence in upward momentum.

Key technical support levels are clustered at USD 400 and USD 385, while initial resistance is observed at USD 435—both well-defined zones that, in the absence of negative catalysts, appear poised to be tested on renewed bullish sentiment.

Short- and Medium-Term Outlook

The current price structure remains highly favorable for entry, with both momentum and accumulation indicators (OBV and Chaikin Money Flow) strengthening in tandem. The recent consolidation phase below USD 425 seems to be setting the stage for a renewed advance, making this a technically strategic juncture for capital placement.

Fundamental Analysis

Leadership in Growth, Profitability, and Strategic Scope

• Revenue Growth: Three-year CAGR stands at 13.7%, while net margin regularly exceeds 35%, underscoring operational efficiency rare for mega-cap companies.
• Profitability: FY2023 operating margin reached 43%; free cash flow for TTM tops USD 69 billion—all well above software sector medians.
• Strategic Expansion: Dominance in cloud (Azure market share > 25% globally), productivity (Office 365, now Copilot-integrated), and gaming (via Activision Blizzard) showcases a diversified yet synergistic growth engine.
• Innovation Moat: Aggressive AI investment—USD 13 billion in OpenAI alone—and rapid deployment of AI copilots amplify Microsoft's position at the vanguard of next-generation software.

Valuation – Premium Is Justified

• Multiples: At USD 420 per share, Microsoft currently trades at roughly 35x TTM earnings, with a forward P/E of 31x—an apparent premium to sector peers. The PEG ratio, at approximately 1.7, reflects strong long-term growth expectations.
• Relative Value: While not a ‘deep value’ play, the prevailing valuation is underpinned by rare visibility into multi-year top-line growth, fortress balance sheet, and strong capital return (dividend yield of 0.7%, robust buyback authorizations).
• Price/Sales: P/S stands at 12.7, positioned in the higher bracket, but justified by secular tailwinds and superior margins.

Structural Strengths

• Technological leadership and R&D intensity (USD 27 billion in FY2023 R&D spend)
• Enormous and sticky enterprise customer base
• Global brand strength and ecosystem lock-in
• Demonstrated agility in pivoting towards new profit pools (AI, cybersecurity, cloud, gaming)

Volume and Liquidity

Deep Liquidity and Market Conviction

Microsoft enjoys one of the highest average daily trading volumes among all US equities—currently exceeding 20 million shares per day—reflecting exceptional liquidity, minimal bid-ask spreads, and high institutional ownership (>73%). This sustained volume profile signals robust market confidence and enables both sizable and tactical entry strategies that are critical for a wide range of investor profiles, from institutional asset managers in Singapore to active private clients.

Favorable Float Structure

The substantial free float and broad index inclusion (S&P 500, Nasdaq-100, MSCI World, and prominent Singapore ETFs) translate into dynamic price discovery and reduced volatility during market stress, underpinning Microsoft’s attractiveness as both a portfolio cornerstone and a tactical trading candidate.

Catalysts and Positive Outlook

Upcoming Growth Drivers

• AI Innovation: Ongoing rollouts of Copilot across Windows, Office, GitHub, and Azure; Copilot’s introduction is anticipated to drive a new wave of license upgrades and incremental revenue.
• Gaming Expansion: Integration of Activision Blizzard boosts gaming content library, enhancing Xbox’s competitive stature.
• Strategic M&A: Recent acquisitions in cybersecurity (e.g., RiskIQ, Miburo) and generative AI cement new verticals with secular growth prospects.
• ESG and Sustainability: Microsoft’s leadership on carbon reduction (carbon negative by 2030), robust supply chain ethics, and digital inclusion initiatives resonate with institutional ESG mandates, notably among APAC sovereign wealth funds.
• Asia-Pacific Focus: Increased regional investment—including new Singapore data center launches and public sector collaborations—provide additional visibility and local market resonance.

Favorable Regulatory and Macroeconomic Context

• Easing interest rate expectations and tech-friendly US policy mitigate macro risk.
• Ongoing digital transformation by enterprises—spurred by hybrid work and cybersecurity imperatives—continues to reinforce secular demand.

Investment Strategies

Attractive Entry Points Across Time Horizons

• Short-Term: The current period of consolidation near new highs creates a tactical window for position-building, particularly ahead of key product launches and upcoming quarterly results, which often act as catalysts for renewed upward movement.
• Medium-Term: With generative AI integration only at an early inflection point, anticipated upgrades and Azure expansion argue for ongoing upward earnings revisions throughout 2024–25.
• Long-Term: For investors seeking a defensible, best-in-class core holding, Microsoft offers a rare blend of growth, cash flow durability, and innovation leadership—core attributes for optimal portfolio construction in today’s globalized landscape.

Optimal Positioning

For Singapore-based investors, Microsoft’s US-dollar exposure offers portfolio diversification, while its advancing role as a digital infrastructure partner in Asia supports both fundamental resonance and currency hedging strength. The stock’s technical configuration—buoyed by strong support and healthy volume—augments its case as an ideal candidate at this technical juncture or ahead of the next earnings catalyst.

Is It the Right Time to Buy Microsoft?

Key Strengths Summarised

• Dominant AI and cloud computing growth drivers, validated by robust financial and operational outperformance
• Favorable technicals, with clear support levels and renewed momentum
• Valuation justified by industry leadership, structural tailwinds, and balance sheet strength
• Exceptionally deep liquidity and market confidence, benefiting all investor types
• Robust pipeline of catalysts spanning product innovation, M&A, and APAC regional partnership expansion

Conviction in Opportunity

On a holistic basis, Microsoft’s fundamentals and technical profile justify renewed and optimistic attention from both institutional and private investors. As the digital economy enters an accelerated AI adoption phase and macro conditions grow increasingly supportive, Microsoft seems poised to enter a compelling new bullish cycle. For investors in Singapore and across the Asia-Pacific, the stock’s strengths suggest it deserves close monitoring and may represent an excellent opportunity to strategically position portfolios for the next decade of technology-driven growth.

The convergence of strong execution, innovation leadership, and broad market conviction places Microsoft in a uniquely attractive position—one that sets the stage for sustained value creation and upside potential as we move decisively into the emerging era of AI-powered enterprise.

How to buy Microsoft stock in Singapore?

Buying Microsoft stock online from Singapore today is simple, secure, and accessible to all retail investors. Regulated online brokers provide reliable platforms, robust protections, and user-friendly tools for your investments. There are two main ways to buy Microsoft shares: via spot buying (traditional ownership) or trading Contracts for Difference (CFDs), which allow you to speculate on price movements. Each method has its own features, suited to different investor profiles and objectives. Below, you’ll find a detailed comparison of leading brokers in Singapore to help you choose the one that fits your needs.

Spot buying

When you buy Microsoft shares for cash (also called spot buying), you’re purchasing actual shares and become a part-owner of the company. This is the classic long-term investment method used by most investors. In Singapore, regulated brokers typically charge a fixed commission per order, often in the range of SGD 5 to SGD 10, plus a small spread.

Example

Suppose the Microsoft share price is USD 420. If you have SGD 1,000 (around USD 740 after conversion), you can buy approximately 1.76 shares of Microsoft, after accounting for a brokerage fee of about SGD 7 (USD 5).

Gain Scenario: If Microsoft’s share price rises by 10%, your holdings grow in value to approximately SGD 1,100 (USD 814).

Result: That’s a gross gain of about SGD 100, or +10% on your initial investment.

Trading via CFD

CFD (Contract for Difference) trading on Microsoft shares lets you speculate on price movements without owning the underlying stock. CFDs offer flexibility, and you can use leverage to increase your market exposure. However, trading CFDs involves additional fees such as the bid-ask spread and overnight financing charges if you hold positions for more than one day.

Example

With SGD 1,000 (about USD 740), you open a CFD position on Microsoft with 5x leverage, giving you a market exposure of SGD 5,000 (USD 3,700).

Gain Scenario: If Microsoft’s share price rises by 8%, your position gains 8% × 5 = 40%.

Result: That’s a gain of approximately SGD 400 (USD 296) on your SGD 1,000 stake (excluding fees). Remember, losses can also be amplified.

Final advice

Before investing in Microsoft shares, it’s essential to compare brokers’ fees, platform features, and investor protections. Each method—cash buying or CFD trading—offers unique benefits and risks. Your choice should reflect your financial objectives, risk tolerance, and investment horizon. Consult the detailed broker comparator below for more guidance and to find the best platform for your needs.

Our 7 tips for buying Microsoft stock

The latest news about Microsoft

Microsoft announced a major AI partnership with Singapore’s government to accelerate digital transformation initiatives. On June 4, 2024, Microsoft and the Singapore government jointly unveiled a multi-year collaboration to harness responsible generative AI in public services and workforce upskilling, including an initiative to train 100,000 individuals in AI skills by 2025. This partnership aims to support Singapore’s Smart Nation strategy and fortify Microsoft’s regional stature, strengthening its cloud and AI offerings in Southeast Asia and potentially enlarging its enterprise client base in Singapore.

Microsoft received approval to add new cloud and cybersecurity services under Singapore’s “IMDA SG Digital” regulatory framework. Within the last week, Microsoft was granted an enhanced accreditation by the Infocomm Media Development Authority (IMDA), streamlining the deployment of its Azure cloud solutions to government agencies and financial institutions in Singapore. This regulatory nod removes previous hurdles for public sector and critical infrastructure projects, offering Microsoft a first-mover advantage as Singapore upgrades its national digital backbone.

Institutional investment flows into Microsoft shares led to robust trading activity on the SGX via ADRs. Recent Singapore Exchange data show a sharp uptick in trading of Microsoft American Depositary Receipts (ADRs), coinciding with inflows from Singapore-based institutional funds. The volume spike follows Microsoft’s strong quarterly earnings and reflects growing local investor confidence, positioning MSFT as a preferred large-cap tech exposure among regional asset allocators.

Microsoft’s regional data centre expansion neared completion in Singapore, boosting cloud capacity and resilience. In the past week, Microsoft reported progress on its $1 billion investment in local data centre infrastructure, with the final phase of expansion in Singapore on track for Q3 2024. This will substantially increase its Azure cloud and AI capacity, promising lower latency and improved compliance for businesses in regulated industries throughout Southeast Asia and reinforcing Microsoft’s physical and strategic commitment to the region.

Microsoft launched new AI-powered Copilot tools tailored for Singapore’s financial sector at the SFF. At the Singapore FinTech Festival (SFF) on June 6, 2024, Microsoft introduced industry-specific Copilot AI assistants designed to streamline compliance and customer advisory workflows for local banks and insurers. Early pilot programs with leading Singaporean financial institutions have demonstrated operational improvements, offering potential for greater market penetration and establishing Microsoft as a pivotal partner for digital finance transformation in the region.

FAQ

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.