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Here’s how much money you’d have if you invested $1,000 in Microsoft 10 years ago

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Microsoft is making artificial intelligence one of its top priorities.

During its fiscal third-quarter earnings call, CEO Satya Nadella explained that “investing in the new AI wave” would remain a key focus for the software giant.

Microsoft announced in January a multibillion-dollar investment in OpenAI, the artificial intelligence lab that created ChatGPT. Since then, Microsoft has begun to incorporate AI technology, dubbed “Copilot,” into some of its well-known products including Word, PowerPoint and Excel.

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The company expects AI will help drive revenue growth over time because it will improve its product offerings.

Fiscal third-quarter revenue grew 7% to $52.86 billion, beating analysts’ prediction of $51.02 billion, according to Refinitiv consensus estimates. Additionally, Microsoft reported earnings per share of $2.45, which surpassed the $2.23 analysts expected.

What this means for investors

Microsoft announced its fiscal third-quarter earnings report after the bell on Tuesday, April 25. The next day, the company’s share price increased by nearly 8% and ended the trading session at $295.37 per share. The momentum continued on Thursday, with Microsoft shares setting a 52-week high.

Here’s how much money you’d have as of April 26 if you had invested $1,000 into the company one, five and 10 years ago.

If you had invested $1,000 into Microsoft a year ago, your investment would be worth about $1,103 as of April 26, according to CNBC’s calculations.

If you had invested $1,000 into Microsoft five years ago, your investment would have more than tripled to $3,248 as of April 26, according to CNBC’s calculations.

And if you had put $1,000 into Microsoft a decade ago, it would have soared to $9,841 as of April 26, according to CNBC’s calculations.

When it comes to investing, research is key

Although a stock may perform well in the short-term, that doesn’t necessarily mean it will continue to do so over the long-term. It’s important to remember that the stock market can be fickle, and there’s no foolproof way to predict how it may behave in the future.

For most investors, a passive investment strategy tends to make more sense than hand-picking individual stocks. Passive funds, such as index funds or exchange-traded funds, don’t use managers to directly run the fund, so they tend to be cheaper than more actively managed funds.

Additionally, passive funds are generally less risky since they invest in a wide array of companies. This lessens the chance that a decline in a particular company’s stock price would bring down your portfolio’s overall performance.

To get started, many experts recommend investing in low cost index funds that track market indices, such as the S&P 500. The S&P 500 index tracks the stock performance of around 500 large, publicly listed American companies, so investing in it adds automatic diversity to your portfolio.

As of April 26, the S&P 500 declined nearly 3% compared with its level 12 months ago, according to CNBC’s calculations. On the other hand, the value of the market index has grown by about 52% since 2018 and increased by about 156% since 2013.

 

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Investment grade will boost realty

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The local property market stands to reap significant benefits, both short-term and long-term, from a likely credit rating upgrade to investment level for Greece.

Industry executives say that would be a very positive development, as, after 14 years, the Greek real estate market will return to the “elite” of investment destinations and it will become easier to attract foreign investment groups and funds.

“There is an objective problem right now regarding the implementation of investments by a number of institutional investors, as there are rules that prohibit the placement of funds in countries below investment grade. In other words, even if there was an investment opportunity and they were willing to take the risk, such an investment would be cut off by the investment committee of the respective group, because it is not allowed to invest in countries that do not have a positive credit rating,” Tassos Kotzanastassis, ULI global management committee executive and CEO of international real estate investment management company 8G Group, tells Kathimerini.

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Securing investment grade means the Greek property market will get back on the “radar” of large institutional investors and state groups that have a long-term investment horizon. This is a development that contradicts speculative moves by a portion of institutions that have been placed in Greece, with a purely short-term horizon, aiming to secure a quick profit and exit from the country.

However, as Kotzanastassis warns, new investments from large foreign funds should not be expected, at least not immediately. “In this period, at the international level, there is significant uncertainty and investors appear restrained. Many are looking for investment opportunities in the form of distressed assets,” he emphasizes.

One of the market’s perennial problems is it is shallow, so it is difficult to create economies of scale that maximize the return on an investment. Another key point is that all foreign investors of this scope are looking for properties with green characteristics, in the context of the ESG policy they follow. Such properties are still rare in this market, constituting a very small minority in relation to the total stock.

 

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Fidelity has cut Reddit valuation by 41% since 2021 investment

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Fidelity, the lead investor in Reddit’s most recent funding round in 2021, has slashed the estimated worth of its equity stake in the popular social media platform by 41% since the investment.

Fidelity Blue Chip Growth Fund’s stake in Reddit was valued at $16.6 million as of April 28, according to the fund’s monthly disclosure released over the weekend. That’s down 41.1% cumulatively since August 2021 when the asset manager spent $28.2 million to acquire the Reddit shares, according to disclosures the firm has made in its annual and semi-annual reports.

Reddit was valued at $10 billion when the social media giant attracted funds in August 2021. Fidelity — which has marked down its stakes in many startups including Stripe and Reddit in recent quarters — also slashed the value of its Twitter stake, it disclosed in the filing, valuing Elon Musk’s firm at about $15 billion.

The substantial markdown of Reddit’s value by Fidelity predominantly occurred by the previous year. Nevertheless, it merits pointing out that Fidelity has persistently implemented minor reductions in the worth of Reddit’s shares in the ensuing months. Fidelity, also an investor in Indian startups such as Meesho and Pine Labs, has effected considerably less dramatic valuation cuts in these holdings in the past two years.

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Reddit declined to comment.

This devaluation, part of a broader trend that has hit a variety of growth stage startups across the globe in the past year, raises uncertainties about whether Reddit will maintain its initial intent to reportedly go public at a valuation around $15 billion.

Reddit, which has raised over $1 billion to date, counts Sequoia Capital and Andreessen Horowitz among its backers. The firm was valued at as high as $15 billion in secondary markets late 2021, according to people familiar with the matter.

The current wave of valuation cutbacks sheds new light on the impact of deteriorating worldwide economic conditions on fledgling startups. Despite the diminished funding activities for startups globally over the past year, valuations of numerous larger startups have stayed constant.

 

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First Nations Technical Institute receives $3.5 million investment

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The Federal Economic Development Agency for Southern Ontario is investing $3.5 million in the First Nations Technical Institute in Tyendinaga Mohawk Territory.

The funding is planned to be used as part of the aviation recovery plan, after a disastrous 2022 fire destroyed a hangar and an entire fleet of planes.

Part of the funds is also going to support the institute’s green energy initiative, by developing solar panels and battery storage intended to power their buildings and offset greenhouse gas emissions.

Suzanne Brant, President of the First Nations Technical Institute, thanked the government of Canada for their help in recovering after the incident.

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FTNI is grateful that the Government of Canada is investing in Indigenous initiatives in
our region, providing benefits to Indigenous learners and communities across Ontario
and Canada
,” said Brant.

Brant also applauded FedDev Ontario‘s decision to launch a support team with dedicated resources to help indigenous businesses in southern Ontario. The new task force is connecting with indigenous lead businesses and has a new web page to show what resources are available to help them.

 

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