Microsoft Corporation (MSFT): history, ownership, mission, how it works & makes money

Microsoft Corporation (MSFT): history, ownership, mission, how it works & makes money

US | Technology | Software - Infrastructure | NASDAQ

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A Brief History of Microsoft Corporation (MSFT)

Company Overview

Microsoft Corporation is headquartered in Redmond, Washington. Founded on April 4, 1975, by Bill Gates and Paul Allen.

Metric 2024 Data
Market Capitalization $2.79 trillion
Total Revenue (2023 Fiscal Year) $211.9 billion
Net Income (2023 Fiscal Year) $72.7 billion
Total Employees 221,000

Key Business Segments

  • Productivity and Business Processes
  • Intelligent Cloud
  • More Personal Computing

Financial Performance

Segment 2023 Revenue
Productivity and Business Processes $59.4 billion
Intelligent Cloud $89.0 billion
More Personal Computing $63.5 billion

Key Products and Services

  • Microsoft 365
  • Azure Cloud Services
  • Windows Operating System
  • Xbox Gaming Platform
  • LinkedIn
  • GitHub

Stock Performance

Stock ticker: MSFT

Stock price as of January 2024: $375.28

52-week range: $213.43 - $407.34

Leadership

CEO: Satya Nadella

Chairman: Satya Nadella



Who Owns Microsoft Corporation (MSFT)

Major Institutional Shareholders

Shareholder Shares Owned Percentage
Vanguard Group Inc 678,715,527 7.89%
BlackRock Inc 596,659,263 6.94%
State Street Corporation 432,247,265 5.03%

Top Individual Shareholders

  • Bill Gates: 103,343,036 shares (1.20%)
  • Satya Nadella: 1,037,412 shares
  • Brad Smith: 447,551 shares

Insider Ownership

Total insider ownership: 0.15%

Ownership Distribution

Institutional investors: 82.4%

Individual investors: 17.6%

Mutual Fund Ownership

Fund Shares Percentage
Vanguard Total Stock Market Index Fund 215,342,876 2.50%
SPDR S&P 500 ETF Trust 142,567,231 1.66%


Microsoft Corporation (MSFT) Mission Statement

Corporate Mission Overview

Microsoft's mission statement: "To empower every person and every organization to achieve more."

Strategic Mission Components

Key Focus Area Quantitative Metrics
Cloud Computing Market Share 23.5% as of Q4 2023
AI Technology Investment $10 billion in OpenAI
Global Enterprise Customers 1.3 million enterprise customers

Mission Execution Priorities

  • Azure Cloud Platform Expansion
  • AI and Machine Learning Integration
  • Productivity Software Development
  • Enterprise Digital Transformation

Financial Performance Alignment

Financial Metric 2023 Value
Annual Revenue $211.9 billion
Net Income $72.7 billion
R&D Expenditure $24.5 billion

Technology Investment Areas

  • Microsoft 365 Platform
  • Azure Cloud Services
  • AI and Generative Technologies
  • Cybersecurity Solutions


How Microsoft Corporation (MSFT) Works

Business Segments

Microsoft operates through the following business segments:

  • Productivity and Business Processes
  • Intelligent Cloud
  • More Personal Computing

Financial Performance

Financial Metric 2023 Value
Total Revenue $211.9 billion
Net Income $72.7 billion
Operating Income $89.5 billion
Earnings Per Share $9.68

Cloud Services

Microsoft Azure cloud platform generated $67.7 billion in revenue in fiscal year 2023.

Key Products and Services

  • Microsoft 365
  • Azure Cloud Services
  • Windows Operating System
  • Xbox Gaming Platform
  • LinkedIn Professional Network
  • Dynamics Enterprise Software

Global Workforce

Total employees as of 2023: 221,000

Research and Development

R&D spending in 2023: $24.5 billion

Market Capitalization

As of January 2024: $1.87 trillion

Geographical Revenue Distribution

Region Revenue Percentage
United States 49.4%
International Markets 50.6%


How Microsoft Corporation (MSFT) Makes Money

Revenue Breakdown

Microsoft Corporation generates revenue through multiple business segments:

Segment Revenue (Q4 2023) Percentage
Productivity and Business Processes $19.2 billion 35.4%
Intelligent Cloud $25.7 billion 47.4%
More Personal Computing $14.2 billion 26.2%

Productivity and Business Processes

Key revenue streams include:

  • Microsoft 365 Subscriptions: $15.2 billion
  • LinkedIn Revenue: $3.5 billion
  • Dynamics 365 and Power Platform: $4.6 billion

Intelligent Cloud

Primary revenue generators:

  • Azure Cloud Services: $21.5 billion
  • Server Products and Cloud Services: $4.2 billion

More Personal Computing

Revenue sources:

  • Windows OEM Licensing: $4.3 billion
  • Xbox Content and Services: $3.8 billion
  • Surface Device Sales: $4.7 billion
  • Search and News Advertising: $1.4 billion

Total Financial Performance

Metric Value
Total Revenue (FY 2023) $211.9 billion
Net Income $72.7 billion
Operating Income $89.5 billion

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