Should I buy Microsoft stock in 2025?

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At HelloSafe, our expert has been tracking Microsoft's performance for over three years. Every month, hundreds of thousands of users in Australia trust us to analyse 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, compensated by Microsoft.

What is Microsoft?

What is the price of Microsoft stock?

The price of Microsoft stock is rising this week. The current stock price stands at USD 498.85, up 1.58% over the last 24 hours and gaining 0.28% over the past week. Microsoft’s market capitalisation is a robust USD 3.71 trillion, with an average three-month daily trading volume of 23.27 million shares. The P/E ratio is 38.55, offering a dividend yield of 0.67%, and its beta is 1.05, indicating moderate volatility. These strong fundamentals and a confirmed upward trend highlight Microsoft’s ongoing appeal for both growth and income-focused Australian investors.

Our Full Analysis of Microsoft Stock

After reviewing Microsoft’s latest financial statements and stock evolution over the past three years, we have synthesised leading indicators from financial metrics, technical signals, competitor analysis, and robust market data using proprietary algorithms. This comprehensive approach aims to illuminate Microsoft’s current position as well as its opportunities and competitive strengths within the tech landscape. So, why might Microsoft stock once again become a strategic entry point into the global technology sector in 2025?

Recent performance and market context

Microsoft stock has demonstrated a resilient uptrend, recently closing at USD 498.85, reflecting a +1.58% intraday gain and a modest 0.28% increase over the last week. Over the past twelve months, the share price has risen by 8.26%, outperforming many global peers in the large-cap technology space. This bullish momentum has been reinforced by consistently positive market reactions to Microsoft’s quarterly earnings, where the company continues to exceed analysts’ expectations on both revenue and profit metrics. Key events, such as large-scale AI investments and favourable updates to the Microsoft Azure platform, have bolstered investor confidence. At the sector level, the ongoing shift towards cloud computing, digital transformation in business and public services, and acceleration of generative AI projects globally—including significant implementations in Australia—create a macroeconomic backdrop that supports robust growth for leading tech franchises like Microsoft.

Technical analysis

Technical signals for Microsoft maintain a distinctly bullish profile in mid-2025. The stock’s current RSI stands at a healthy 72.78—suggesting strong upward momentum, albeit near the overbought threshold. The MACD indicator continues its positive trend, confirming sustained buying interest and supporting further price advances. Moving averages reinforce this strength, with the 50-day and 200-day averages both sloping upward, a classic confirmation of a sustained uptrend. The most recent price action saw Microsoft break through key resistance levels between USD 495.05 and USD 500, now establishing these as near-term supports. Technical structure favours continued advances, with dips toward the USD 488–495 zone likely to attract buyers seeking tactical entries before the next major leg higher. These indicators all point to a market environment where the risk/reward profile for a new position appears attractive.

Fundamental analysis

Fundamental metrics illustrate Microsoft’s excellence as a global technology leader. Quarterly revenue has climbed to USD 69.63 billion, a figure that not only surpasses consensus forecasts but also marks 13.27% growth year-over-year—a remarkable pace for a company of this scale. Profitability remains robust, underpinned by an EPS of USD 3.23 and a net margin protected by the firm’s recurring revenue in software subscriptions and cloud services. The company’s valuation (P/E ratio of 38.55) is at a premium, but this is readily justified by strong projected growth, accelerating adoption of generative AI in both Azure and enterprise productivity suites, and a proven history of converting innovation into tangible shareholder value. Microsoft’s broad-based strategy—including business lines in intelligent cloud, modern work, and gaming—ensures stability through diversification, while continued dominance in AI and cloud infrastructure enhances its overall investment appeal. Strategic expansion, from substantial R&D outlays to acquisition of talent and technology, strengthens its competitive position against peers such as Amazon and Google.

Volume and liquidity

Trading volumes are consistently strong with a three-month average daily turnover of 23.27 million shares, reflecting persistent interest from institutional and retail investors alike. Such high liquidity not only minimises transaction costs but also enables effective execution of larger orders for Australian funds and private wealth managers. With a public float of 7.32 billion shares and institutional ownership exceeding 73%, the stock’s ability to attract capital is a testament to its broad credibility and appeal. The robust market depth enables dynamic price discovery and valuation adjustments, which are essential for capturing new upside as each bullish catalyst materialises. Sustained volume at these levels is a positive indicator of enduring market confidence in Microsoft’s fundamental story.

Catalysts and positive outlook

Microsoft’s future prospects are driven by a compelling line-up of bullish catalysts. Key among these is the accelerating adoption of Copilot+ AI for productivity and enterprise workflows, which is rapidly becoming embedded as an essential tool in global business strategy. Investments in Azure cloud are paying off with 34–35% projected growth in this segment, a figure that far surpasses the industry average and places Microsoft at the epicentre of digital transformation. Strategic partnerships, most notably with OpenAI, reinforce Microsoft’s leadership in generative AI and advanced computing. Other positive drivers include the rollout of next-generation Copilot+ PCs, expansion into new geographies (such as sizeable investments in Latin America and growing infrastructure in Asia-Pacific), and the strong ESG credentials that position it well with Australian and international institutional investors. Furthermore, Microsoft’s quarterly dividend—notably increased over the past years—adds an element of income reliability on top of growth, making it attractive for a range of investment mandates.

Investment strategies

• For short-term traders, the recent breakout above USD 500 and the current bullish momentum suggest the potential for tactical gains ahead of imminent earnings or product launches. A disciplined stop-loss strategy near key supports can manage short-term volatility.
• For medium-term investors, holding through the upcoming quarterly results and expected Azure or Copilot+ PC updates provides exposure to positive surprise potential and sector rotation tailwinds.
• For long-term capital allocators, Microsoft’s blend of defensive cashflow, innovative thrust in AI, and strong management underpin a case for structural portfolio inclusion. The stock’s steady dividend growth and history of resilience through diverse business cycles further support long-term confidence.
• Entry timing appears advantageous at or near current prices, especially on pullbacks toward the established support zone, positioning investors to benefit from the numerous growth catalysts on the horizon.

Is it the right time to buy Microsoft?

All evidence indicates that Microsoft is entering a promising new phase, bolstered by superior earnings, relentless innovation in AI and cloud, and a technical configuration that continues to invite buying pressure. The share’s premium valuation is readily explained by the magnitude of its opportunity in reshaping enterprise digitisation and harnessing next-generation technology. With forward visibility on income, a fortress balance sheet, and a world-class brand, Microsoft seems to represent an excellent opportunity for investors seeking a top-tier technology growth stock. The upcoming quarters—driven by Azure’s expansion, Copilot deployments, and broader digital transformation—are likely to reward those willing to take a constructive and forward-looking stance. For Australian investors in particular, Microsoft stands out as a liquid, well-governed, and future-ready vehicle to access the potential of global tech megatrends.

In light of these factors, the current market context justifies renewed interest in Microsoft, and the stock may be entering a new bullish phase that savvy investors will not want to overlook.

How to buy Microsoft stock in Australia?

Buying Microsoft stock online is simple, secure, and can be done using any regulated broker in Australia. Investors typically have two options: buying shares directly (spot buying) or trading via Contracts for Difference (CFDs). Spot buying gives you full ownership of real shares, while CFDs allow you to speculate on price movements, often with leverage. Each method comes with its own advantages and risks. For more details on which broker to choose, see our comparison table further down the page.

Spot buying

A cash purchase of Microsoft stock means you directly own the company’s shares in your name via a broker. In Australia, this method usually involves a fixed brokerage fee per order, typically around AUD 5–10, depending on the platform.

Gain scenario

If the Microsoft share price is $498.85 USD (about $750 AUD), you can buy around 1.3 shares with a $1,000 AUD stake, including a brokerage fee of around $5 AUD.

If the share price rises by 10%, your shares are now worth $1,100 AUD.

Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

With CFDs (Contracts for Difference), you do not own the underlying Microsoft shares, but you can trade on their price using leverage. Fees include a spread (the difference between buy/sell prices) and overnight financing costs if you keep positions open beyond one day. CFDs are popular for short-term strategies and enable you to take positions with only a fraction of the required capital.

CFD Position with 5x Leverage: Gain Scenario

You open a CFD position on Microsoft shares, with 5x leverage.

This gives you a market exposure of $5,000 AUD for a $1,000 AUD investment.

✔️ Gain scenario:

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +$400 gain, on a bet of $1,000 AUD (excluding fees).

Final advice

Before you buy Microsoft stock, it’s important to compare the fees, trading conditions, and protections provided by different brokers—our comparison is available further down the page. Both spot buying and CFD trading suit different objectives: spot buying is best for long-term investors seeking direct ownership, while CFDs are ideal for active traders looking to maximise short-term moves with leverage. Make your choice according to your investment goals and risk appetite.

Our 7 tips for buying Microsoft stock

The latest news about Microsoft

Microsoft stock reaches new all-time high following record quarterly earnings. Microsoft’s share price climbed to USD 498.85 after the company announced Q2 revenue of USD 69.63 billion and EPS of USD 3.23, both exceeding analysts’ forecasts. This upward momentum was further supported by continued double-digit annual growth and robust cloud results.

Microsoft strengthens its local presence in Australia by expanding Azure cloud infrastructure and AI services. The company has reinforced its investment in Australian data centre capacity to meet rising demand from public and private sectors. This local expansion is aimed at supporting digital transformation initiatives and AI integration within Australian organisations.

Microsoft’s Copilot AI services see rising adoption by major Australian enterprises and government agencies. Several top Australian companies have started to roll out Copilot solutions, leveraging Microsoft’s ecosystem to boost productivity. Local government agencies are also piloting generative AI tools for improved operational efficiency and citizen services.

ASX-listed technology ETFs report net inflows as Microsoft leads global tech optimism. Microsoft’s positive earnings and global leadership in AI have boosted Australian investor interest in US tech stocks, as reflected in increased allocations to US-focused ETFs available on the local market.

Regulatory approval for Microsoft’s new business processes in Australia remains strong and stable. Microsoft has received timely endorsements for recent AI offerings and cloud services from local authorities, confirming its compliance with Australian data privacy and security laws. This regulatory clarity is helping the company to accelerate its regional go-to-market plans without facing significant delays.

FAQ

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.