Microsoft (NASDAQ: MSFT) is one of the world’s largest and most influential technology companies. It is also the most valuable public company in the world today, with a valuation of $3.4 trillion. In addition to providing cloud computing services, market-leading operating systems, and productivity software, the tech giant is also at the forefront of the artificial intelligence (AI) revolution.
Strong financial results and emerging opportunities in AI have contributed to the company’s stock performance in recent times. The software giant’s stock price has increased by 34% in the past year alone.
Even more impressive, the stock has returned more than 1,160% since Satya Nadella became CEO of the company in February 2014. That means if you had invested $1,000 on the day Nadella took office on February 4, 2014, your investment would now be worth more than $12,570.
Nadella has done wonders at Microsoft
While Microsoft is on a winning streak, it’s easy to forget that the company was facing major challenges when Nadella took over as CEO. Due to failed projects and unproductive strategic directions, the company and its stock had a rough start to the decade. But Microsoft has managed to mount an incredible turnaround.
Nadella spearheaded a new strategy focused on subscription services. The company moved away from one-time license purchases for Office and other software and began selling them on a subscription basis. That made the company’s sales more reliable and also helped boost margins.
He also oversaw the strategic prioritization and growth of the company’s Azure strategy. cloud infrastructure servicesAzure has experienced incredible growth over the past decade and currently ranks second in market share, behind only AmazonAWS.
Microsoft’s cloud business is generating strong sales, growing rapidly, and boasting impressive profit margins. It’s also helped the company tap into emerging demand for AI, and the best is likely yet to come.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a position in Amazon and Microsoft. disclosure policy.
If You Invested $1,000 in Microsoft Stock 10 Years Ago, Here’s How Much You’d Have Today was originally published by The Motley Fool
