Should I buy Microsoft stock in 2025? Expert Analysis for PH Investors

What is Microsoft?

How much is Microsoft stock?

The price of Microsoft stock is declining this week. As of the latest close, Microsoft shares are trading at $450.18, registering a 24-hour drop of $4.68 (-1.03%) and a weekly decrease of 1.89%.

The company’s market capitalization stands at $3.35 trillion, with an average daily trading volume over the past three months of 20.15 million shares.

Given the stock’s moderate volatility and global presence, Microsoft remains an attractive opportunity for PH investors looking for stability in the tech sector.

Our full analysis on Microsoft stock

Having reviewed Microsoft’s most recent financial disclosures and meticulously analyzed its extraordinary three-year stock performance, we have applied our proprietary blend of quantitative metrics, advanced technical models, and rigorous peer benchmarking to distill the current potential of the stock. Drawing on multiple data sources, sector indicators, and a comprehensive review of Microsoft’s competitive landscape, our findings signal a notably resilient and innovative profile. So, why might Microsoft stock once again become a strategic entry point into the global technology sector for 2025 and beyond?

Recent Performance and Market Context

Microsoft’s stock has exhibited impressive resilience and growth, reflecting both the company’s robust operating performance and the confidence of global investors in the technology sector’s enduring momentum. Closing at $450.18 as of May 23, 2025, the stock registered a +15.1% gain over the past six months and an even more compelling +23.4% over twelve months. Despite a modest weekly pullback (-1.89%) and a slight single-day retreat (-1.03%), the prevailing price structure signifies consolidation within a strong multi-year upward channel.

• Stellar Q3 2025 results: Revenue ($70.1 billion, +13% YoY) and net income ($25.8 billion, +18% YoY) both exceeded analyst expectations.
• Continued market optimism: A record $3.35 trillion market capitalization underscores sustained investor demand, with digital transformation and generative AI as sector-wide catalysts.
• Sector leadership: Cloud and artificial intelligence solutions, integral to Microsoft’s strategy, remain demand-rich, benefiting from macro trends such as global enterprise digitization and rising cloud adoption.
• Positive institutional sentiment: 70% institutional ownership by leading entities like Vanguard Group and BlackRock reinforces confidence in Microsoft as an institutional cornerstone.

This confluence of robust earnings, strong brand equity, and favorable macroeconomic tailwinds provides a powerful foundation, suggesting that Microsoft is well-positioned for further outperformance relative to sector peers.

Technical Analysis

Technically, Microsoft exhibits a textbook bullish formation—an auspicious indicator for prospective investors:

• Momentum indicators:
• RSI (14-day) at 66.8 shows strong momentum, though edging close to the overbought threshold, often coinciding with short-term consolidations before renewed advances.
• MACD (12,26,9) at 10.4 remains firmly positive, underscoring continued upward trend strength.
• Moving averages:
• The stock trades above its 20-day ($448.7), 50-day ($413.3), 100-day ($401.5), and 200-day ($413.4) moving averages.
• The “golden cross” (50-day MA above 200-day MA) is a historically bullish technical signal, with MSFT confirming this in recent sessions.
• Support and resistance:
• Major short-term support sits at $440, with structural “safety nets” at $413.3 (50-day MA) and $401.5 (100-day MA).
• Resistance levels are noted at $458.87, $465, and, for medium-term projection, $475.

The sum of these indicators reinforces the view that MSFT’s upward trajectory is robust, with shallow pullbacks providing potential attractive entry windows for new positions.

Fundamental Analysis

Microsoft’s fundamental strengths are striking and, crucially, justify ongoing enthusiasm for the stock at current price levels:

• Powerful growth dynamics:
• Q3 2025 revenue of $70.1 billion, a 13% YoY increase (15% in constant currency), underlines exceptional scalability across global markets.
• Azure, Microsoft’s flagship cloud platform, showed 33% YoY growth, securing continued leadership versus competitors (e.g., AWS, Google Cloud).
• Net income ($25.8 billion, +18% YoY) and earnings per share ($3.46, +18% YoY) not only surpassed market expectations but affirm operational excellence.
• Attractive valuation relative to growth:
• The trailing P/E of 34.79 and a forward P/E of 30.03, while above the historical sector average, are more than justified by durable double-digit growth, broad profit margins, and strategic expansion.
• A Price/Sales (implicit from revenue and market cap) in line with other mega-cap tech but supported by higher profitability and recurring revenues.
• Strategic differentiation:
• Market dominance in cloud infrastructure and business software delivers strong customer lock-in and consistent cash generation.
• Ongoing investments in next-generation AI and hybrid cloud ensure sustained innovation, deterring new entrants and enhancing competitive moat.
• A resilient and diverse business model—spanning Productive Business Processes, Intelligent Cloud, and More Personal Computing—mitigates sector cyclicality.

For Philippine investors especially, this foundation offers not just a window into global tech growth but exposure to best-in-class management and world-class innovation, making Microsoft a compelling consideration for globally diversified portfolios.

Volume and Liquidity

Liquidity is an unambiguous strength for Microsoft:

• Sustained execution: With a rolling 3-month average trading volume of 20.15 million shares, MSFT provides seamless liquidity for investors, ensuring smooth entry and exit around fundamental and technical levels.
• Market confidence: High turnover and strong float have translated into dynamic valuation upticks and minimized execution risk.
• Institutional backbone: Around 70% of shares are institutionally held—often an indicator of long-term capital stability and reduced volatility.

Such liquidity not only provides reassurance for risk management, especially relevant for Philippine and regional prosumers navigating US market timings, but also underlines ongoing confidence in Microsoft’s earnings durability and growth prospects.

Catalysts and Positive Outlook

Looking ahead, several credible catalysts support the thesis that Microsoft may be set to enter a new phase of value creation and market outperformance:

• Relentless cloud expansion: Azure delivers industry-leading growth, supported by ongoing investments in global data center infrastructure.
• AI everywhere: Deep integration of AI across both enterprise offerings (via Azure OpenAI Service and Copilot in Microsoft 365) strengthens differentiation and drives new business workloads.
• Gaming and consumer innovation:
• The success of Xbox content and the expansion into subscription gaming signal new recurring revenue opportunities.
• Strategic game studio acquisitions and cloud gaming innovation provide further tailwinds.
• Enterprise digitalization: Organizations continue accelerating their shift to the cloud, with Microsoft often as the partner of choice for digital transformation across government, education, and SMB markets.
• Shareholder returns: Continued confidence is reinforced by consistent capital returns—$9.7 billion returned in Q3 2025 alone through dividends and buybacks.
• ESG leadership: Microsoft’s sustainability initiatives and transparent ESG reporting are increasingly valued by global investors, supporting share price resilience and reputational premium.

Importantly, analyst consensus is resolutely upbeat; with a consensus 12-month target of $585.23 (c. +30%), the risk/reward ratio appears distinctly favorable at current market levels.

Investment Strategies

Thanks to its wide appeal, Microsoft’s stock aligns with investors seeking both near- and long-term thematic exposure:

• Short-term positioning:
• Attractive after healthy technical consolidations or pullbacks toward $440 or $413 support.
• Occasional dips historically have spurred strong institutional buying interest.
• Medium-term strategies:
• Building positions ahead of major catalysts—earnings reports, Azure product launches, or regulatory shifts—has consistently rewarded patience.
• Participation prior to anticipated AI and cloud product announcements enables capture of incremental upward momentum.
• Long-term orientation:
• Microsoft’s revenue diversification, innovation pipeline, and fortress balance sheet support a durable, compounding growth profile.
• Regular dividend increases and robust buyback commitments ensure total return potential is not solely price appreciation-dependent.

Philippine-based investors can consider deploying capital through global US dollar accounts, ADRs (if available), or diversified ETFs, always in line with individual risk profiles and asset allocation plans.

Is It the Right Time to Buy Microsoft?

The confluence of robust financial performance, sector-defining innovation, and favorable technical dynamics makes Microsoft a standout name in today’s shifting technology landscape. Strong revenue growth, expanding margins, institutional validation, and a relentless focus on cloud and AI have positioned MSFT at the very frontier of digital transformation. Liquidity, global brand leadership, and a compelling slate of forthcoming catalysts further amplify its attractiveness.

While macroeconomic uncertainties and regulatory scrutiny must always be monitored, the stock’s fundamentals more than justify renewed interest and suggest that Microsoft may be entering a new bullish phase. With a growing dividend, best-in-class product suite, and a management team known for flawless execution, Microsoft seems to represent an excellent opportunity for investors in the Philippines seeking resilient and global technology exposure in 2025.

For those seeking to capitalize on the next wave of technological innovation and growth, Microsoft’s combination of visionary leadership, financial strength, and dynamic catalysts delivers a compelling case for close consideration and potential addition to forward-looking portfolios.

How to buy Microsoft stock in PH?

Buying Microsoft stock online is now easier and more secure than ever for investors in the Philippines. By opening an account with a regulated broker, you can access Microsoft shares and choose between two popular investment methods: direct (spot) buying of shares or trading via Contracts for Difference (CFDs). Each approach has its own benefits—with spot buying you become a shareholder, while CFDs let you benefit from price swings without owning the stock. Before choosing, it’s important to compare broker fees, which you’ll find analyzed further down this page.

Spot Buying

When you make a cash purchase of Microsoft stock, you’re buying real shares, becoming a part-owner of the company. This method is ideal for investors who want to hold shares for the long term and receive dividends. Typical fees for Philippine investors include a fixed commission per order, often ranging from PHP 200 to PHP 400, plus any currency conversion costs (USD to PHP).

Important example

For example, if Microsoft is trading at $450.18 per share, a $1,000 investment lets you purchase approximately 2 shares (totaling $900.36), with about $5 (roughly PHP 285) left to cover commission fees. Gain scenario: If the share price rises by 10% to $495.20, your shares would then be worth $1,100. Result: That’s a $100 gross gain, or +10% on your original investment.

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on Microsoft’s price movements without actually owning the shares. This method is popular among active traders because it allows leverage, amplifying both potential gains and risks. Instead of a commission, CFD brokers charge a spread (the difference between buy and sell prices) and, if you hold positions overnight, a small daily financing fee.

Important example

Suppose you invest $1,000 in Microsoft CFDs using 5x leverage. This means your market exposure is $5,000. Gain scenario: If the stock rises by 8%, your CFD position would rise by 8% × 5 = 40%. Result: That’s a $400 gain on your $1,000 margin (excluding spreads and overnight charges).

Final Advice

Before buying Microsoft stock, take the time to compare different brokers’ fees, available platforms, and support for Philippine investors. Your best choice will depend on your investment goals—whether you prefer holding shares for the long term or trading short-term moves with leverage. For a clear overview, don’t forget to check out our broker comparison further down this page. Investing in global tech leaders like Microsoft is now more accessible than ever—take your first step with confidence!

Our 7 tips for buying Microsoft stock

The latest news about Microsoft

Microsoft posted robust earnings growth and exceeded analyst expectations in its Q3 Fiscal 2025 results. Net income rose 18% year-over-year to $25.8 billion, driven by double-digit gains in all core business segments. Notably, the Intelligent Cloud segment, which includes Azure, surged 21%, with Azure itself growing 33%, underlining Microsoft’s global cloud leadership. The company’s strong performance reinforces confidence in the sustainability of its growth, and its diversified revenue base is particularly relevant for investors in the Philippines who benefit from Microsoft’s foundational role in local enterprise and government digitalization efforts.

Microsoft Cloud revenue soared to $42.4 billion in the latest quarter, reflecting a 20% year-over-year increase. This expansion is directly relevant to the Philippines, where demand for scalable and secure cloud infrastructure is accelerating in both the private and public sectors. Microsoft’s continued investments in regional data centers and cloud services support local digital transformation, aligning with Philippine national digitization agendas and making MSFT shares especially attractive for investors seeking exposure to resilient tech infrastructure growth in Southeast Asia.

Analysts maintain a strong buy consensus on Microsoft, with a target price 30% above the current level. The market’s optimism is grounded in sustained growth projections—13-15% annually—and Microsoft’s continued investments in cloud, artificial intelligence, and enterprise software. For Philippine analysts and portfolio managers, this consensus signals upside potential for Microsoft shares, bolstered by the pivotal role of Microsoft platforms across key Philippine industries such as banking, BPO, and education, where digital solutions are mission-critical.

Technical indicators reveal a firmly bullish trend, confirmed by price action above all major moving averages and a golden cross pattern. As of the last closing, Microsoft traded at $450.18—above its 20-, 50-, 100-, and 200-day moving averages—while its RSI of 66.8 suggests healthy momentum with some caution due to its proximity to overbought territory. This robust technical profile increases investor confidence in the near-to-medium-term outlook, making MSFT an appealing allocation for Philippine funds looking to diversify via high-performing global technology stocks.

Microsoft’s strategic focus on AI and global data center expansion continues to generate new business and local partnerships in Southeast Asia. Recent weeks have seen the rollout of expanded AI capabilities across its product lines, directly supporting the Philippine market’s push toward automation and enhanced digital services. These initiatives, alongside substantial investments in infrastructure and return of $9.7 billion to shareholders, provide a clear signal of Microsoft’s ongoing commitment to growth and value creation, benefiting Philippine investors through both direct use of its platforms and the financial performance of its stock.

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.