Microsoft's Great Shift

By Raulin Cadet | Published Dec. 4, 2023 | Updated Dec. 5, 2023 | Topics: Microsoft, Technology, Stock price

For approximately ten years, Microsoft's stock price has been on an upward trend. Can we consider this as Microsoft transitioning from good to great?

Jim Collins' evaluation of a company's performance, from good to great, is based on its outcomes. Of course, the purpose of his book "Good to Great" is to explain why some businesses make the transition from good to great while others do not. Collins demonstrates that a prolonged period of extremely strong financial performance indicates that a company makes the move from Good to Great. However, he does not offer any analyses or recommendations for the best financial indicators to find businesses that carry out the aforementioned shift. In this blog post, I consider closing stock price.

The Microsoft stock price, as shown in this post's graphic, indicates a transition to strong performance that began almost after 2010. Following this change, Microsoft's stock price increased fast until it reached December 2021. Considering the graphic, I understand that Microsoft has made the transition from a good to a great corporation based on the rapid and strong performance of its stock price over an extended period of time.

Microsoft's stock price has recently reached its highest value since 2000. Will this trend of fast price growth restart and continue into the new year?