In 2014, Satya Nadella assumed the CEO role at Microsoft, succeeding industry giants Bill Gates and Steve Ballmer.
Under Nadella’s leadership, Microsoft’s stock has surged tenfold, surpassing the performance of all major tech competitors, according to Stocklytics.com.
A decade into Nadella’s tenure, Microsoft has become the most valuable public company globally, surpassing its Big Tech rivals, including Apple.
Stocklytics Financial analyst Edith Reads said, “The transformative leadership of Satya Nadella at Microsoft has been nothing short of extraordinary, as evidenced by the company’s impressive surge in stock value over the last decade.
“This success is a testament to Nadella’s strategic vision and ability to navigate challenges. This is seen in the revitalization of Microsoft’s core business and the emergence of the ‘Intelligent Cloud’ business as a revenue powerhouse.”
Microsoft Corporation’s growth
When Nadella joined Microsoft, he faced a challenging landscape. The American multinational technology corporation grappled with missed opportunities in the mobile device market, the failure of Windows 8, and the decline of the PC market. This cast doubt on the future of its core business, Windows.
Upon Nadella’s appointment, Steve Ballmer, who had worked with him for over 20 years, expressed confidence in Nadella’s leadership, stating, “I know that Satya is the right leader at the right time for Microsoft.”
Ballmer’s foresight proved accurate, as Nadella, having previously overseen the transformation to cloud infrastructure and services, intensified this shift as CEO. Under his guidance, Microsoft’s “Intelligent Cloud” business emerged as an industry powerhouse, generating nearly $90 billion in revenue in the latest fiscal year.
Is Microsoft Corporation a lucrative investment?
In the past three years, Microsoft Corporation has achieved an impressive 18% annual growth in its earnings per share (EPS), accompanied by a 7.5% increase in revenue over the last year.
The company has had a remarkable journey, with its stock witnessing a staggering 969 percent increase since Nadella assumed the helm. This growth outpaced Apple’s 923-percent surge and surpassed other industry giants such as Amazon, Meta, and Alphabet. The S&P 500 index, by comparison, experienced a 173 per cent increase over the same period, underscoring the exceptional performance of the tech sector in recent years.
Microsoft boasts a market capitalization of $ 2.95 trillion, with the CEO receiving a total annual compensation of $49 million for the fiscal year ending in June 2023.
Most shareholders are likely content with Microsoft Corporation, given its impressive total return of 82% over the past three years. The upward revenue trajectory aligns with favourable business conditions, reflecting Microsoft’s overall performance. Such strong performance might make some shareholders comfortable with the CEO receiving compensation exceeding the standard for a company of its size.