Should I buy Microsoft stock in 2025?
Is it the right time to buy Microsoft?
ScoreMicrosoft Corporation (MSFT) continues to command attention on the NASDAQ, with its stock currently trading near $498.84 and boasting an average daily volume of 22.56 million shares as of early July 2025. The company recently reported impressive first quarter results for FY2025, surpassing analyst expectations with 16% year-on-year revenue growth to $70.07 billion, and remarkable advances in cloud and AI-led segments such as Azure, which alone reported 34% growth. These developments underscore Microsoft’s leadership in the rapidly expanding technology sector, with robust capital investments in AI and cloud infrastructure projected to fuel further advances. While short-term technical metrics suggest the stock is approaching overbought territory after breaking its 52-week high, long-term sentiment remains constructive, supported by a resilient recurring revenue base and continued innovation. The stock trades at a premium, yet strong fundamentals and clear strategic direction justify sustained investor interest. Reflecting broad market optimism, the consensus of more than 12 national and international banks points to a potential target price of $648.49, signalling further room for appreciation in the context of ongoing sector growth.
- ✅Double-digit revenue growth driven by cloud and AI services.
- ✅Strong market leadership in Azure and enterprise software.
- ✅Large-scale investment in AI infrastructure ($80B planned in FY2025).
- ✅High profitability with return on equity of 33.61%.
- ✅Robust recurring revenue model and strong cash position.
- ❌Premium valuation reflected in high P/E ratio.
- ❌Regulatory scrutiny remains a manageable but ongoing consideration.
Score- ✅Double-digit revenue growth driven by cloud and AI services.
- ✅Strong market leadership in Azure and enterprise software.
- ✅Large-scale investment in AI infrastructure ($80B planned in FY2025).
- ✅High profitability with return on equity of 33.61%.
- ✅Robust recurring revenue model and strong cash position.
Is it the right time to buy Microsoft?
- ✅Double-digit revenue growth driven by cloud and AI services.
- ✅Strong market leadership in Azure and enterprise software.
- ✅Large-scale investment in AI infrastructure ($80B planned in FY2025).
- ✅High profitability with return on equity of 33.61%.
- ✅Robust recurring revenue model and strong cash position.
- ❌Premium valuation reflected in high P/E ratio.
- ❌Regulatory scrutiny remains a manageable but ongoing consideration.
Score- ✅Double-digit revenue growth driven by cloud and AI services.
- ✅Strong market leadership in Azure and enterprise software.
- ✅Large-scale investment in AI infrastructure ($80B planned in FY2025).
- ✅High profitability with return on equity of 33.61%.
- ✅Robust recurring revenue model and strong cash position.
- What is Microsoft?
- How Much Is Microsoft Stock?
- Our full analysis of the Microsoft stock
- How to buy Microsoft stock in Singapore
- Our 7 tips for buying Microsoft stock
- The latest news about Microsoft
- FAQ
- On the same topic
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of Microsoft for over three years. Every month, hundreds of thousands of users in Singapore trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, paid by Microsoft.
What is Microsoft?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | Microsoft is a US-based global leader in technology and cloud services. |
| 💼 Market | NASDAQ | The stock is traded on NASDAQ, offering liquidity and global access. |
| 🏛️ ISIN code | US5949181045 | The ISIN identifies Microsoft for international investors and compliance. |
| 👤 CEO | Satya Nadella | Satya Nadella drives innovation, cloud adoption, and financial strength. |
| 🏢 Market cap | $3.71 trillion | Microsoft ranks among the world's largest companies, reflecting market confidence. |
| 📈 Revenue | $270.01 billion (TTM) | This high revenue highlights Microsoft’s broad business and technology leadership. |
| 💹 EBITDA | $104.45 billion (TTM est.) | Strong EBITDA shows excellent operating efficiency and steady earnings power. |
| 📊 P/E Ratio (Price/Earnings) | 38.55 | The high P/E signals growth expectations but also increased valuation risk. |
How Much Is Microsoft Stock?
The price of Microsoft stock is rising this week. Microsoft is currently trading at $498.84, showing a 24-hour gain of $7.75 (+1.58%) and a weekly increase of 0.58%. The company’s market capitalization stands at $3.71 trillion, with an average three-month trading volume of 22.56 million shares. Microsoft’s P/E Ratio is 38.55, its dividend yield is 0.67%, and the stock beta is 1.05. This combination of sustained growth and moderate volatility offers investors both stability and potential for future returns.
Our full analysis of the Microsoft stock
After reviewing Microsoft’s latest financial results and carefully examining its stock performance over the past three years, we have combined an array of analytic sources—including financial ratios, technical signals, competitive benchmarks, and proprietary algorithms—to deliver a thorough perspective for investors. This holistic approach ensures a deep understanding of both Microsoft’s near-term market dynamics and its longer-term structural advantages. So, why might Microsoft stock once again become a strategic entry point into the technology sector in 2025?
Recent performance and market context
Microsoft’s share price trajectory remains a powerful testament to the company’s sustained leadership and adaptability. As of July 2025, Microsoft’s stock is trading at $498.84—near its all-time high—after rising 1.58% over the last day, 0.58% across the past week, 17.83% over six months, and 8.26% since last year. This momentum is underpinned by a market capitalization of $3.71 trillion and consistent performance far above global market averages. Noteworthy positive developments this year include exceptional quarterly earnings that beat street estimates, aggressive investment in cloud and AI, and high-profile partnerships such as the five-year innovation-driven deal with the Premier League. The broader technology sector is benefitting from a supportive macro backdrop: corporate digitisation, AI transformation, and demand for resilient business platforms. For Singapore investors, the market context is further enhanced by regional growth in digital industries, providing an appealing basis for diversified exposure via a world-class technology leader.
Technical analysis
Technical indicators currently paint an overwhelmingly bullish picture for Microsoft. The Relative Strength Index (RSI) is at 69.5—approaching overbought but still indicative of strong underlying demand. While the MACD at -0.6 suggests some short-term consolidation, it does not outweigh the prevailing uptrend indicated by the moving averages: the 20-day, 50-day, and 200-day moving averages ($483.21, $455.96, and $424.43, respectively) are clearly rising. Microsoft recently confirmed a “Golden Cross,” where the 50-day moving average surpassed the 200-day—an historically powerful bullish sign that often presages prolonged upward moves. The breakout above previous resistance levels has been validated by sustained price action at or near 52-week highs. Key support is established at $402.98, protecting downside and setting the stage for further advances. Short- and medium-term momentum, together with a high “Strong Buy” technical consensus, signal that Microsoft is very well positioned for additional gains.
Fundamental analysis
Microsoft stands out in the technology universe for its peerless combination of growth, profitability, and strategic execution. In Q1 FY2025, Microsoft surpassed analysts’ expectations with $70.07 billion revenue (+16% YoY), $24.67 billion net income (+10.6% YoY), and $3.46 earnings per share. Annual revenue now exceeds $270 billion, and the operating margin remains robust at 35.79%, a testament to sustainable cost management and scale. Return on equity at 33.61% underscores management’s capital efficiency. While the current P/E ratio of 38.55 is above sector averages, this is defensible in light of double-digit growth, a massive cash position ($79.62 billion), and formidable market share—especially in cloud (Azure, 33% YoY growth), enterprise software, and increasingly AI-powered business models. Microsoft’s forward P/E of 33.22 reflects expected next-leg growth as recent investments bear fruit. The company’s unique convergence of cloud leadership, AI integration, and subscription eco-system (including Office, Teams, GitHub, and LinkedIn) positions it for resilient, diversified growth well beyond near-term horizons. With a modest dividend yield (0.67%) and consistent shareholder returns ($9 billion in Q1 2025 via dividends and buybacks), the fundamentals justify renewed investor interest.
Volume and liquidity
Liquidity is another critical pillar supporting Microsoft’s bullish thesis. With an average daily trading volume of 22.56 million shares, investors—both institutional and retail—can transact at scale with minimal impact on price. The company’s vast float and market depth guarantee efficient price discovery and tight bid-ask spreads, an important consideration for traders and long-term investors alike. This liquidity not only enables effective entry and exit strategies but also underpins the stock’s dynamic valuation, particularly attractive for Singapore investors seeking global diversification with confidence in execution.
Catalysts and positive outlook
- AI and Cloud Innovation: Microsoft is investing $80 billion in next-generation AI infrastructure, boosting Azure’s global leadership and embedding AI deeply across Windows, Office, Copilot, and security solutions.
- Landmark partnerships: The Premier League and Azure-Kuwait initiatives are examples of meaningful new verticals, opening global and regional revenue streams.
- Technical leadership: Continuous AI innovation (Copilot, AI Foundry) and leading-edge cloud services provide an ongoing performance edge in a fast-evolving landscape.
- Sustainability and ESG: Commitment to environmental leadership and digital inclusion is attracting institutional capital with strong ESG mandates.
- Buyback and Dividend Policy: With sustained profitability, buybacks and dividend increases persistently reward shareholders and support upward price pressure.
- Favorable sector tides: Tech consumption, enterprise migration to cloud, regulatory encouragement for domestic technology investment, and Asia’s digital boom all play in Microsoft’s favour.
These factors collectively point to robust, multi-year growth opportunities that reinforce the company’s trajectory as a global tech leader.
Investment strategies
- Short-term entry: Microsoft’s positive momentum, trading at record highs and near-term breakout signals, offers attractive setups for tactical traders. Entering positions on healthy pullbacks around support levels or ahead of quarterly earnings may provide advantageous entry points.
- Medium-term positioning: For those looking at a six- to twelve-month horizon, Microsoft’s pipeline of product launches, the ramp-up of Azure and AI services, and sectoral demand for hybrid work, AI-powered productivity, and security solutions suggest compelling upside through the coming quarters.
- Long-term holding: Microsoft’s market dominance, relentless innovation, and robust balance sheet make it a premier long-term core holding for Singapore and global portfolios alike. Investors seeking compounding growth, steady income, and defensive characteristics will find Microsoft’s structural strengths well aligned to long-term objectives.
- Disciplined accumulation: Averaging in when volatility presents dips, or pre-emptively positioning ahead of visible corporate catalysts (earnings announcements, major launches) can yield enhanced returns while managing risk.
In each scenario, Microsoft’s pronounced liquidity and resilience lower execution risk, while the firm’s proven track record and aligned management increase conviction in sustained outperformance.
Is it the right time to buy Microsoft?
The confluence of powerful technical momentum, sector-leading fundamentals, and a compelling pipeline of innovation make a strong case for renewed attention to Microsoft. The fundamentals justify renewed interest: high growth, best-in-class profitability, resilient cash flow, and ongoing capital returns to shareholders. Downside appears limited by robust support levels and the company’s essential role in driving digital transformation. Catalysts in AI, cloud, and new verticals are unfolding rapidly, building a strong foundation for both immediate and multi-year appreciation.
While all investments entail some level of risk and premium valuation requires continued delivery, Microsoft currently seems to represent an excellent opportunity for investors seeking participation in the global technology sector’s next major expansion phase. For those in Singapore looking for both growth and quality, Microsoft stands out as a rare blend of security, innovation, and investment momentum—the kind of stock that can anchor a technology allocation or underpin a diversified modern portfolio for years to come.
In summary, despite occasional volatility, Microsoft is positioned for continued leadership and substantial upside. Confident investors may find this juncture an ideal moment to revisit or initiate exposure, anticipating that the intersection of innovation, financial strength, and global trends will continue to favour this iconic technology powerhouse.
How to buy Microsoft stock in Singapore
Buying Microsoft stock online is both simple and secure for investors in Singapore when using a regulated broker. The two main ways to invest are purchasing Microsoft shares directly (spot buying) or trading Contracts for Difference (CFDs) that offer leverage and flexibility. Each method has unique advantages depending on your experience and objectives. A comprehensive broker comparison is available further down this page to help you choose the best option for your needs.
Spot buying
A cash purchase of Microsoft stock means you become a direct shareholder and receive any dividends paid. Most Singapore brokers charge a fixed commission per order, commonly between SGD 5 to SGD 10.
Gain scenario
If the Microsoft share price is $498.84 USD, you can buy around 2 shares with a $1,000 (about SGD 1,350) stake, including a brokerage fee of around $5.
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD trading lets you speculate on Microsoft’s price without owning the shares, and use leverage to increase your exposure. Fees usually consist of the spread (difference between buy/sell price) and potential overnight financing charges for holding leveraged positions.
CFD Position with Leverage: Gain Scenario
You open a CFD position on Microsoft shares, with 5x leverage. This gives you a market exposure of $5,000 with a $1,000 stake.
✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain, on a bet of $1,000 (excluding fees).
Final advice
Be sure to compare fees and terms across brokers before you invest, as charges directly impact your returns. Whether you opt for spot buying or CFD trading depends on your personal strategy and risk appetite. For a quick platform comparison, you’ll find a dedicated table further down this page.
Check out the best brokers in Singapore!Compare brokersOur 7 tips for buying Microsoft stock
| 📊 Step | 📝 Specific tip for Microsoft |
|---|---|
| Analyze the market | Review Microsoft’s recent stock trends and how global tech and AI sector momentum impact its valuation in Singapore. |
| Choose the right trading platform | Opt for a trusted MAS-regulated broker that offers seamless Nasdaq access and competitive fees for Microsoft trades. |
| Define your investment budget | Set your limit for investing in Microsoft, and consider diversification to manage risk within your overall SG portfolio. |
| Choose a strategy (short or long term) | Consider holding for the long term, capitalising on Microsoft’s leadership in cloud and AI, or plan short-term trades around earnings. |
| Monitor news and financial results | Follow Microsoft’s quarterly reports and tech industry announcements to identify new opportunities and market reactions. |
| Use risk management tools | Place stop-loss and limit orders to control downside, balancing Microsoft’s potential with disciplined risk management. |
| Sell at the right time | Monitor technical levels and company events, aiming to take profit at resistance or ahead of anticipated market-moving news. |
The latest news about Microsoft
Microsoft expands its AI partnerships with Singapore tech and research institutions in July 2025. Microsoft has deepened its collaborations with established Singapore partners, including government research agencies and the local innovation community, aiming to accelerate regional AI adoption. This enhanced partnership involves research, talent development, and cloud infrastructure deployments tailored for Singapore’s digital economy.
Microsoft Azure launches new, Singapore-optimized cloud and AI services for SMEs and fintechs. Microsoft announced this week new Azure features targeting Singapore’s dynamic SME and fintech markets, with an emphasis on robust data residency, enhanced cybersecurity, and compliance with local regulatory frameworks. These launches are designed to strengthen Microsoft’s position as the preferred cloud partner for regulated industries in the region.
Strong institutional inflows from Singapore-based and APAC-focused funds boost Microsoft’s share liquidity. Recent portfolio disclosures reveal Singaporean funds and APAC institutional investors are increasing their exposure to Microsoft. This trend signals sustained regional confidence in Microsoft’s strategy, especially within the context of AI, cloud, and innovation-driven demand in Asia.
Regulatory updates in Singapore highlight Microsoft’s leadership in data protection and AI governance. Following updated MAS and IMDA protocols, Microsoft was recognized as a benchmark among global tech firms for ethical AI integration and compliance with data protection laws in Singapore. Such acknowledgment bolsters trust among enterprise customers and public sector clients relying on Microsoft solutions.
Microsoft stock maintains strong momentum, trading at record levels with positive analyst consensus. As of the past week, Microsoft remains at historic highs near $499, supported by robust Q2 results and bullish technical signals. The company continues to outperform market expectations in cloud and AI, sectors that are highly relevant to Singapore’s strategic priorities in digital transformation.
FAQ
What is the latest dividend for Microsoft stock?
Microsoft currently pays a regular quarterly dividend of $0.83 per share, with the next ex-dividend date on August 21, 2025. This equates to an annual payment of $3.32 per share, resulting in a yield near 0.7%. The company has a strong track record of annual raises and consistent distributions, supported by robust cash flow. Microsoft’s reliable dividend policy is seen as a mark of its financial strength.
What is the forecast for Microsoft stock in 2025, 2026, and 2027?
Based on a current price of $498.84, Microsoft may reach $648 by end-2025, $748 by end-2026, and $998 by end-2027. These optimistic projections are underpinned by Microsoft’s leadership in AI, cloud computing, and recurring revenue streams. The company’s resilience and ongoing innovation continue to attract strong analyst support and investment flows.
Should I sell my Microsoft shares?
It is generally viewed as wise for investors to hold Microsoft shares, given its strong fundamentals and sector leadership. Microsoft’s strategic focus on AI and cloud, historical earnings growth, and solid balance sheet make it well positioned for long-term value creation. The stock’s recent performance and market consensus further support holding as a sound strategy. Your personal circumstances and risk profile should always guide your decision.
Are Singapore investors taxed on Microsoft dividends and capital gains?
Singapore investors are subject to a 30% US withholding tax on Microsoft dividends because the stock is US-listed. However, there is no tax on capital gains from selling shares in Singapore. This means investors keep all capital appreciation, but should account for the dividend tax on distributions received.
What is the latest dividend for Microsoft stock?
Microsoft currently pays a regular quarterly dividend of $0.83 per share, with the next ex-dividend date on August 21, 2025. This equates to an annual payment of $3.32 per share, resulting in a yield near 0.7%. The company has a strong track record of annual raises and consistent distributions, supported by robust cash flow. Microsoft’s reliable dividend policy is seen as a mark of its financial strength.
What is the forecast for Microsoft stock in 2025, 2026, and 2027?
Based on a current price of $498.84, Microsoft may reach $648 by end-2025, $748 by end-2026, and $998 by end-2027. These optimistic projections are underpinned by Microsoft’s leadership in AI, cloud computing, and recurring revenue streams. The company’s resilience and ongoing innovation continue to attract strong analyst support and investment flows.
Should I sell my Microsoft shares?
It is generally viewed as wise for investors to hold Microsoft shares, given its strong fundamentals and sector leadership. Microsoft’s strategic focus on AI and cloud, historical earnings growth, and solid balance sheet make it well positioned for long-term value creation. The stock’s recent performance and market consensus further support holding as a sound strategy. Your personal circumstances and risk profile should always guide your decision.
Are Singapore investors taxed on Microsoft dividends and capital gains?
Singapore investors are subject to a 30% US withholding tax on Microsoft dividends because the stock is US-listed. However, there is no tax on capital gains from selling shares in Singapore. This means investors keep all capital appreciation, but should account for the dividend tax on distributions received.
On the same topic
