Microsoft Corporation (MSFT) stock has put on a show this year that few would have predicted heading into 2014. Shares of MSFT stock are up 28% year-to-date, more than doubling the 13% gain of the S&P 500.
A new chief executive was greeted warmly by investors, and MSFT stock benefited throughout the year from new products, and acquisition, cost-cutting and strong earnings reports.
Of course, the real question for Microsoft stock investors as the year wraps up is whether the tech giant can keep the momentum going.
Before we find out, let’s take a look back at what had Microsoft stock moving in 2014.
Microsoft Stock: Jan 31
Within the first month of 2014, Microsoft stock was stealing headlines thanks to big-time executive news. Ever since Steve Ballmer stepped down, rumors swirled around who would take the reins of MSFT. When the news was formally announced at the end of January that Satya Nadella was the CEO, Microsoft stock investors were pleased.
Aftermath: Shares of MSFT stock gained about 3% right away.
Microsoft Stock: March 18
In mid-March, Microsoft stock got another boost on word that it would unveil a new product for mobile and cloud computing on March 27. A news conference and formal announcement was scheduled and stock rose amid expectations that Microsoft would reveal Office for iPad — a prediction that ended up being correct.
Aftermath: MSFT stock had a one-day gain of 4%, sending shares of Microsoft stock to a 14-year high.
Microsoft Stock: April 25
The tech company finally closed on its purchase of the Finnish company Nokia for $7.2 billion. Under terms of the deal, Microsoft acquired Nokia’s handset business, but not the name of the company. Nokia will continue to manage the Nokia brand while licensing the name to Microsoft. MSFT later decided to eliminate the Nokia name from the Nokia Lumia phones, instead calling them Microsoft Lumia phones.
Aftermath: MSFT shares gained almost 3%.
Microsoft Stock: July 16
Bad news was good news. Microsoft announced monster job cuts in the middle of the month — 18,000 jobs and 14% of the workforce, to be exact. While that was not-so-hot news for the Microsoft employees in question, the cost-cutting and general re-structuring had MSFT stock investors cheering.
Aftermath: Microsoft shares popped up 4%.
Microsoft Stock: Oct. 24
Similar cheering took place after Microsoft reported first-quarter earnings in the fall. The company’s results beat expectations on the top and bottom line, thanks in part to strong hardware sales. Plus, the company’s general shift to focus more on cloud computing was evident in the report, and supported a longer term bull case for MSFT.
Aftermath: Shares were up over 2% after the report.
Microsoft Stock: Dec 16
Of course, it’s not all good news for Microsoft stock. Earlier this month, shares moved in the opposite direction. The reason? Analysts at Bank of America/Merrill Lynch downgraded MSFT to “underperform” from “neutral” and slapped the stock with a $47 price target … right below where shares are currently sitting. One reason for the downgrade: a slowdown in the Win Pro cycle.
Aftermath: MSFT stock had a one-day 3% loss.
As of this writing, Robert Martin did not hold a position in any of the aforementioned securities.
