What if you invested $1000 in Microsoft 20 years ago?
Have a look at the above chart and you'll see that if you put a grand into MSFT stock two decades ago, today it would be worth more than $24,000. The same amount invested in the S&P 500 20 years ago would theoretically be worth almost $6,500 today.
If you had invested $1,000 in Google stock on Aug. 19, 2004, today, you would have $60,107. Likewise, if you had invested $1,000 in an index fund replicating Nasdaq, you would have $9,000. A similar $1,000 investment in an index fund that replicates the S&P 500 would be worth $4,815.
So, if you had invested in Nvidia ten years ago, you're likely feeling pretty good about your investment today. According to our calculations, a $1000 investment made in March 2014 would be worth $172,169.75, or a 17,116.97% gain, as of March 1, 2024.
Those gains translate to a 23.2% compound annual growth rate for Amazon compared to a 6.2% CAGR for the S&P 500 in that time. As a result, $10,000 in AMZN stock purchased 20 years ago would now be worth $645,262. A $10,000 investment in the S&P over the same period, however, would amount to $33,452.
MSFT boasts an average earnings surprise of 8.8%. Earnings for Microsoft are forecasted to see growth of 18.6% for the current fiscal year as well. Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable.
The $5,000 per share thesis is somewhat dependent on there not being an economic slowdown anytime soon – although given that many observers predict an economic boost from the recovery of the coronavirus crisis, this possibility remains unlikely.
Assuming Nvidia is still trading at the same forward P/E, its stock price could reach $3,360 by the end of 2030, or 328% above the current share price. That would put its market cap at over $8 trillion.
A pragmatic approach to investing in Nvidia
So yes, Nvidia just might be able to grow that a $20,000 investment into a cool million, but it's a long road to that ambitious target and many things can go wrong along the way.
As a result, an investment of $10,000 a decade ago would be worth over $107,000 today. The company made many millionaires over the last decade, begging the question: Does it still have much to offer new investors? Let's examine Amazon's business more closely and determine whether it's still worth investing in in 2024.
If you had invested in Amazon ten years ago, you're probably feeling pretty good about your investment today. According to our calculations, a $1000 investment made in November 2013 would be worth $8,061.01, or a gain of 706.10%, as of November 21, 2023, and this return excludes dividends but includes price increases.
What will Amazon stock be worth in 10 years?
Analysts at Coin Price Forecast do offer a 2034 projection for Amazon stock, estimating a 10-year price increase of 276%, to $672 per share.
The analyst consensus growth rate over the next five years for Apple is 11% per year, the lowest five-year growth rate of any Magnificent Seven stock. Compare that to Microsoft's consensus growth rate of 16.3% and it's clear which company is better positioned to grow in the near to mid term.
Microsoft 10-Year Performance
With its closing price of $402.65 on March 5, 2024, it recorded an incredible gain of 1,148%. This is even more than Apple's outsized gain of 916% and marks a more than 12x return for Microsoft investors who held the stock for the full 10 years.
An acceleration in Microsoft's growth, multibillion-dollar revenue opportunities, and the company's valuation indicate that its stock market rally is sustainable.
The table below shows the present value (PV) of $3,000 in 20 years for interest rates from 2% to 30%. As you will see, the future value of $3,000 over 20 years can range from $4,457.84 to $570,148.91.
A stock portfolio focused on dividends can generate $1,000 per month or more in perpetual passive income, Mircea Iosif wrote on Medium. “For example, at a 4% dividend yield, you would need a portfolio worth $300,000.
The highest analyst price target is $550.00 ,the lowest forecast is $440.00. The average price target represents 18.09% Increase from the current price of $404.27. What do analysts say about Microsoft? Microsoft's analyst rating consensus is a Strong Buy.
Amazon's analyst rating consensus is a Strong Buy. This is based on the ratings of 42 Wall Streets Analysts.
Microsoft stock has received a consensus rating of buy. The average rating score is Aaa and is based on 96 buy ratings, 1 hold ratings, and 2 sell ratings.
Nvidia (NVDA) stock has very little chance of hitting $10,000 by the end of next year, but it's fun to ponder the possibility. To reach $10,000, it needs significant multiple expansion. Nvidia could strike gold again with what lies beyond chatbot generative AI.
Will Nvidia overtake Microsoft?
If Nvidia kept its 77 times earnings price tag with $55 billion in profit, it would be valued at $4.24 trillion, easily surpassing Microsoft as the world's largest company. But that isn't likely.
Key Points. Nvidia's data center is its largest target market platform by revenue. Data center is also the company's fastest-growing platform. Nvidia's profits are growing faster than its revenue because its data center platform is more profitable than its overall business.
Suppose you're starting from scratch and have no savings. You'd need to invest around $13,000 per month to save a million dollars in five years, assuming a 7% annual rate of return and 3% inflation rate. For a rate of return of 5%, you'd need to save around $14,700 per month.
Nvidia has 14.96% upside potential, based on the analysts' average price target. Is NVDA a Buy, Sell or Hold? Nvidia has a conensus rating of Strong Buy which is based on 39 buy ratings, 2 hold ratings and 0 sell ratings. The average price target for Nvidia is $1,004.92.
The Vanguard Group, Inc. is currently the largest shareholder, with 8.3% of shares outstanding.
