After winning the 90s by having its Windows operating system on the large majority of PCs, Microsoft (MSFT) experienced a lost decade in the 2000s. From its peak in December 1999 to its trough in March 2009, Microsoft (MSFT) fell 75%! Throughout the 2000s, “Mr. Softy” as it was called was considered “dead money,” and it was all but forgotten by momentum and growth investors.
If there was an award given out for “Comeback Stock of the Decade,” there’s no doubt that MSFT would be an odds on favorite for the 2010s. After missing out on search and social media, MSFT hit a homerun with its transition from a traditional software company to a “software as a service” (SaaS) cloud company.
The long-term price chart for MSFT is something to behold. While the stock experienced bigger gains in percentage terms during its run in the 1990s, its sheer price move this decade totally dwarfs the 90s move at this point. The point at which MSFT really took off was after it finally broke above its 1999 highs back in late 2016. This is one of the best examples you’ll find of a breakout from a long-term base.
Since its Financial Crisis low in 2009, MSFT’s price has moved up 809%. Since breaking out above its 1999 highs in late 2016, the stock has more than doubled with a gain of 131%, making it the largest company in the world once again with a market cap of $1.06 trillion!
Unfortunately for those that missed out on MSFT’s epic comeback decade (which is most investors), the chart below is certainly not one you would want to go out and buy right now! You certainly can’t make the argument that you’d be “buying low.” Start a two-week free trial to one of our three membership levels for access to our premium research.