Should I buy Microsoft stock in 2025?

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At HelloSafe, our expert has been monitoring Microsoft’s performance for more than three years. Every month, hundreds of thousands of users across Canada trust us to break down market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes only and should not be considered investment advice. In accordance with our ethical charter, we have never received, and will never receive, any compensation from Microsoft.

What is Microsoft?

How much is Microsoft stock?

The price of Microsoft stock is rising this week. As of May 2, 2025, MSFT trades at $425.40 USD, up $30.14 (7.63%) in the last 24 hours and showing a strong 9.84% increase for the week. The company holds a market capitalization of $3.16 trillion and trades an average of 25.89 million shares daily (3-month average). Microsoft’s price-to-earnings ratio sits at 32.90, with a dividend yield of 0.78% and a stock beta of 1.17, reflecting moderate volatility. With positive momentum and bullish signals, Microsoft continues to attract attention for its growth and innovation potential, though market swings are possible.

Our full analysis on Microsoft stock

We have reviewed Microsoft's latest financial results and its robust stock performance over the past three years, combining proprietary analysis of financial indicators, technical signals, market data, and the competitive landscape. Our systematic approach uncovers both longstanding strengths and emerging catalysts in Microsoft's trajectory. 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 (NASDAQ: MSFT) continues to set the pace in the technology sector, powered by strong earnings momentum and resilient market positioning. As of May 2, 2025, MSFT closed at $425.40, surging 7.6% intraday and nearly 10% over the past week—an outsized performance clearly driven by enthusiasm over its Q1 FY2025 results and guidance. Over the trailing twelve months, the stock has climbed 4.6%, weathering mid-cycle sector rotations and macro volatility, and outperformed several software infrastructure peers.

This robust price action is matched by the company’s delivery on headline growth; Q1 revenues reached $65.6 billion, up 16% year-over-year, with especially vigorous expansion in the Intelligent Cloud and More Personal Computing segments. Sentiment was buoyed further by Microsoft’s visible commitment to shareholder returns—$9 billion distributed via dividends and buybacks last quarter—signaling both robust cash flows and board-level confidence in the longer-term business model.

From a macro perspective, the U.S. technology sector is benefitting from stable monetary policy expectations and persistent demand for digital transformation. As enterprise and government clients accelerate cloud adoption and AI integration, leaders like Microsoft are ideally positioned to capture an outsized share of the spending wave. In Canada and globally, the increasing reliance on cloud and software services in critical sectors (healthcare, education, public services) further underscores MSFT’s relevance.

Technical Analysis

Technical signals on Microsoft have grown sharply bullish in recent weeks. The stock not only trades above all its key simple moving averages (SMA)—with the current price notably above the 20-, 50-, 100-, and 200-day SMAs—but also triggered a bullish momentum confirmation after crossing above the 200-day SMA, a classic signal of medium- to long-term strength.

• RSI (14) at 57.6 denotes neutral sentiment, avoiding overbought extremes and suggesting the rally retains gas for further upside.
• MACD (12,26,9) at 1.25 supports ongoing bullish momentum, with positive crossovers reinforcing the trend.
• Support levels are well-established at $417.14 and in the $380.20–396.65 range, providing attractive zones for risk-managed accumulation.
• Resistance stands at $429.63 and $447.28, with recent price action testing these zones.

Importantly, while the Stochastic Oscillator (%K = 93.3) and CCI (270.2) register in technically overbought territory, this is consistent with strong upward thrust post-earnings and often marks the opening of new momentum cycles in large-cap tech.

Overall, Microsoft’s technical structure signals that the medium-term bullish thesis is intact, with high-probability setups for investors seeking both tactical and strategic entry points around support retests or confirmed breakouts.

Fundamental Analysis

From a fundamental perspective, Microsoft remains a pillar of stability and long-term value creation in the technology sector. The Q1 FY2025 report highlighted:

• 16% revenue growth (YoY), at scale, emphasizing both organic and acquisition-driven expansion.
• Operating income of $30.6 billion (+14% YoY) and net income of $24.7 billion (+11% YoY), reflecting excellent cost control despite heavy investments in AI and cloud.
• Diluted EPS growth of 10% YoY, comfortably ahead of consensus.

Microsoft’s diversification is particularly instructive:

• Cloud Services (Azure): Azure revenue advanced 33% YoY, and management projects 34–35% growth for Q4. AI is contributing roughly half of these incremental gains, confirming Microsoft as a prime beneficiary of the ongoing AI infrastructure build-out.
• Office/Microsoft 365 and Productivity: Commercial cloud adoption and subscription growth continues to bolster recurring revenues.
• Gaming: The Activision Blizzard acquisition drove a 61% YoY jump in Xbox content/services revenue, with further upside as this integration progresses.

On valuation, MSFT’s P/E ratio sits at 32.9, a premium but one consistently justified by superior margins, double-digit top-line growth, and dominant market positioning. PEG ratios remain moderate, given growth visibility, while the company’s price-to-sales and price-to-cash-flow metrics also reflect its remarkable profitability and low operational risk.

• $130.71 billion in operating cash flow (TTM)
• $79.62 billion in cash on hand
• market leadership in cloud, AI, gaming, and productivity software

provide a robust foundation for reinvestment and innovation.

The company’s aggressive capital allocation toward AI infrastructure, particularly the shift to high-value chip assets, signals a management team fully aligned with market trends and well-prepared for the next cycle of technological transformation.

Volume and Liquidity

Microsoft trades an impressive 25.9 million shares daily (3-month average), ensuring deep liquidity and tight bid-ask spreads even under conditions of market turbulence. This high turnover demonstrates persistent institutional involvement and market confidence, enabling both retail and professional investors to enter or exit positions at scale with minimal slippage.

The stock’s massive float and institutional ownership structure (74.3% held by funds) reinforce the likelihood of sustained, dynamic valuation, especially as the company maintains its schedule of regular buybacks. This liquidity profile also supports the deployment of more sophisticated investment strategies, such as options overlays or systematic accumulation.

Catalysts and Positive Outlook

Several material catalysts support a constructive outlook for MSFT into 2025 and beyond:

• Accelerating AI monetization: Azure’s AI-fueled growth is beginning to drive not just technical adoption but material new revenues, with further penetration expected as generative AI tools are rolled out across Microsoft’s top product families.
• Ongoing cloud investment: With capital expenditures surging 53% to $21.4 billion in Q3, Microsoft is both cementing its long-term competitiveness and opening the door to higher future margins as new AI workloads scale up.
• Gaming and consumer engagement: The integration of Activision Blizzard offers significant cross-selling opportunities and the potential creation of a gaming ecosystem with compelling recurring revenues.
• Sustainability and ESG leadership: Microsoft’s continued commitment to cloud energy efficiency, carbon-neutral operations, and responsible AI development addresses key institutional investor priorities and reinforces its reputational moat.
• Sectoral tailwinds: The global regulatory, enterprise, and public sector shift toward sovereign cloud and secure software services are driving addressable market expansion.
• Shareholder returns: Share buybacks and a steadily growing dividend yield—which may become more prominent should interest rates normalize—anchor the stock for both growth and income-focused portfolios.

Investment Strategies

Microsoft’s current technical, macro, and company-specific backdrop offers compelling entry scenarios for a variety of strategic timelines:

• Short-term positions can focus on tactical pullbacks toward well-established support in the $417–$396 range, with tight stops and targets set just below resistance near $430.
• Medium-term investors may look to accumulate positions ahead of key product launches, cloud/AI rollout developments, or major earnings events—all of which have historically acted as upside catalysts and revaluation moments.
• Long-term allocation can be justified by the company’s formidable balance sheet, industry leadership, and exceptional visibility in secular growth drivers. Entry at or near the current technical base provides an attractive risk-adjusted holding period return, especially for those allocating within retirement accounts or seeking core technology exposure.

Ideal positioning emerges for investors aiming to incrementally build exposure at current levels, layering in on any consolidation phases, or scaling in as new AI or cloud monetization milestones are disclosed.

Is it the Right Time to Buy Microsoft?

In summing up Microsoft’s current position, the company combines all the essential ingredients of a foundational technology holding: accelerating top- and bottom-line growth, undeniable market leadership in cloud and AI, a management team that proactively reinvests for the next innovation cycle, and technical signals suggesting renewed secular upside. The stock’s liquidity, institutional sponsorship, and substantial cash flow further underpin investor conviction.

While all investments carry risk—including potential macro headwinds and elevated sector competition—Microsoft’s robust financial health, innovation pipeline, and execution track record arguably justify renewed interest at this stage. The company’s expanding AI ecosystem, momentum across cloud and gaming, and visible shareholder return strategy set the stage for durable growth over the next several years.

With these strengths and a constructive sector backdrop as tailwinds, Microsoft increasingly seems to represent an excellent opportunity for investors seeking exposure to the leadership tier of global technology—with current price action and upcoming catalysts providing timely reasons to give this stock serious consideration for portfolio inclusion.

As the technology sector enters a phase of renewed expansion, Microsoft stands at the intersection of innovation, scale, and shareholder value—solidifying its role as a strategic entry point for the next wave of Canadian and global tech investment.

How to buy Microsoft stock in Canada?

Buying Microsoft stock online is both straightforward and secure when you use a regulated broker in Canada. Modern platforms offer user-friendly interfaces, strong security measures, and guidance for beginners. As a retail investor, you can choose between buying Microsoft shares directly (spot buying) or trading them via Contracts for Difference (CFDs), each with its own features and risk profile. Further down this page, you’ll find a comparison tool to help you evaluate key brokers for each method.

Spot Buying

Spot buying refers to the direct, cash purchase of Microsoft shares through a brokerage account. When you choose this method, you become a partial owner of Microsoft and can benefit from price appreciation and dividend payments. Most Canadian brokers charge a fixed commission per order—typically ranging from $5 to $10 CAD.

Important information

Example: If the Microsoft share price is $425.40 USD (about $585 CAD at recent exchange rates), a $1,000 CAD investment lets you buy approximately 1 share, after accounting for a typical $5 CAD brokerage fee.
Gain scenario: If the share price rises by 10%, your shares would be worth $1,100 CAD in total.
Result: +$100 gross gain, representing a 10% return on your investment (before any currency impact or taxes).

Trading via CFD

CFD trading allows you to speculate on Microsoft stock price movements without owning the actual shares. CFDs can be traded long or short, and often with leverage, amplifying both potential gains and risks. Fees for CFDs typically consist of the “spread” (difference between buy/sell prices) and overnight financing if you hold positions for more than one day.

Important information

Example: Suppose you open a CFD position on Microsoft with a $1,000 CAD deposit, using 5x leverage. Your exposure to the market is $5,000 CAD.
Gain scenario: If Microsoft’s stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain on your $1,000 bet (excluding fees). Remember, gains and losses are magnified with leverage, so risk management is essential.

Final Advice

Before investing, always compare brokers’ fees, trading platforms, and account conditions to find the best fit for your needs—especially regarding commissions, spreads, and available tools. Your choice between spot buying and CFD trading should reflect your financial goals, risk tolerance, and investment horizon. To help you make an informed decision, we provide a comprehensive broker comparison lower on this page.

Platforms

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4.9

Minimum Deposit

$50

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Broker specializing in Forex and CFDs

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Our 7 tips for buying Microsoft stock

The latest news about Microsoft

Microsoft stock surged more than 7% this week after delivering robust Q1 FY2025 results driven by cloud and AI growth. In its latest earnings report released on May 1, Microsoft posted a 16% year-over-year increase in revenue to $65.6 billion and reported net income of $24.7 billion, surpassing analyst forecasts. The company’s Azure cloud segment—critical to both global operations and Canadian enterprises—demonstrated 33% annual revenue growth, underlining Microsoft’s dominant market position. This performance has boosted overall investor confidence, reflected in an almost 10% weekly share price gain. With considerable enterprise adoption of Microsoft’s cloud and AI solutions in Canadian financial, healthcare, and public sectors, these results point to continued relevance and growing market share in Canada.

Technical indicators for Microsoft are decisively bullish, with the stock currently trading above all major moving averages. MSFT crossed above its 200-day simple moving average and remains well above the 20-, 50-, and 100-day averages, signaling sustained momentum. Investor sentiment is further buoyed by a neutral to slightly elevated RSI (57.6) and a positive MACD, both indicative of strong support levels and buying enthusiasm. While some overbought conditions are present—such as a high stochastic oscillator—no substantial signals of sustained reversal have emerged, and volume remains healthy. For Canadian institutional investors and portfolio managers, these technical signals underscore confidence in Microsoft as a core technology holding.

Microsoft’s ongoing investment in AI infrastructure and data centers directly supports regional growth and partnerships in Canada. Capital expenditures rose by 53% this quarter, now topping $21.4 billion and channeling resources into high-growth AI and cloud computing platforms. In Canada, Microsoft continues to expand its cloud region footprint, having recently unveiled investments in data centers and AI training initiatives targeting Canadian businesses and public sector organizations. This regional commitment enhances cloud service performance, data residency, and regulatory compliance for Canadian clients, reinforcing Microsoft’s local value proposition and long-term growth potential for Canadian shareholders.

Analyst consensus remains strongly positive, as reflected by an 18% upside to the current target price and unwavering institutional support. More than 70% of Microsoft’s shares are owned by institutional investors, many of whom are Canadian pension funds and asset managers with a strategic focus on US technology stocks. Analysts broadly agree on the company’s fundamental strengths, with a median target price of $503.26—well above current trading levels—supported by Microsoft’s diversified revenue streams, robust cash flow, and leadership in both cloud and AI. This broad, fact-based optimism is further validated by Microsoft’s steady history of dividend increases and extensive share buybacks, making it both a growth and income play for the Canadian market.

The regulatory and tax framework remains favourable for Canadian investors, aided by US-Canada tax treaties and Microsoft’s transparency. Dividends paid by Microsoft to Canadian residents are generally subject to a reduced US withholding tax rate of 15%, thanks to the tax treaty between the two countries, and are eligible for the Canadian dividend tax credit. Microsoft’s stock also remains a prime eligible asset for registered Canadian accounts (such as RRSPs and TFSAs), permitting tax-efficient investment for both growth and income. Regulatory scrutiny in North America continues, but no Canada-specific risks have emerged in recent filings or policy discussions, contributing to a stable operating environment for Canadian investors.

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.