If you own a computer, you know of Microsoft Windows. In fact, it’s the most widely used operating system in the world, with 7 out of 10 computers using it. As a result, Microsoft is one of the most valuable companies in the world.
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Since the company went public on March 13, 1986, its stock has grown exponentially. What if you could go back in time and invest $1,000 when it went public? If you were lucky enough to do so, your original $1,000 could be worth over $7.6 million today.
How about if you invested $1,000 in Microsoft stock just 25 years ago? How much would it be worth today?
Microsoft Stock in 2000
Founded in 1975 by Bill Gates and Paul Allen, Microsoft Corporation was already a major tech company by the year 2000. At the time, it was riding the wave of the dot-com boom, and had a market share of 97%.
Let’s assume you invested $1,000 at the beginning of 2000. The stock opened on January 3, 2000, at $58.69, according to Microsoft’s website. Therefore, your $1,000 would buy you 17 shares (adjusted for Microsoft’s nine stock splits).
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What Is Microsoft Stock Worth in 2025?
As of January 22, 2025, Microsoft’s stock price closed at $446.20. If you multiply that by your 17 shares, they would now be worth $7,585.40, a return of close to 660%.This amount, however, does not include reinvested cash dividends. Cash dividends are payments a company makes to its shareholders from its profits.
Microsoft’s current quarterly dividend is $0.83 per share. You would receive $14.11 (17 shares x $0.83) per quarter. You can reinvest the money through a dividend reinvestment plan (DRIP) or receive it as cash. Reinvesting through a DRIP allows you to purchase additional shares at a discounted rate, compounding the value of your investment.
If you reinvested your dividends since 2000, your return would be $12,419 — a return of 1,142%. This is almost 70% more than if you had not reinvested your dividends.
The Dot-Com Bubble and Microsoft’s Long-Term Stock Performance
Stock prices fluctuate, and even successful companies like Microsoft experience setbacks. Shortly after 2000, the dot-com bubble burst. Microsoft’s stock price dropped and remained stagnant for years. For example, the $1,000 invested at the beginning of 2000 was worth just $355 two and half years later — a 65% loss. However, if you were patient, the stock not only regained what you lost, but also increased significantly.
Investing in stocks is a long-term commitment. While there may be ups and downs, history shows that those who hold onto their investments long-term are more likely to see significant returns.
Comparing Microsoft Stock’s Performance to Other Investments
While a 1,142% return on a $1,000 investment in Microsoft stock over the past 25 years is impressive, how does it compare to S&P returns?
The average annual return of the S&P 500 since 2000 is approximately 7.9% per year, for a total return of 565%, assuming you reinvested your dividends. A $1,000 investment in an S&P 500 index fund would be worth roughly $6,652 by 2025, almost half of Microsoft’s return. Ultimately, investors who stuck with Microsoft reaped the rewards.
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This article originally appeared on GOBankingRates.com: If You Invested $1,000 in Microsoft Stock in 2000, How Much Would It Be Worth 25 Years Later?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
