How To Buy Microsoft Stock On Robinhood (MSFT)

Microsoft is one of the largest and most influential tech companies in the world, trading at over $500 as of 2025 and boasting a market cap of nearly $4 trillion, making it an appealing investment for many people.

If you're considering buying Microsoft stock, here's a comprehensive guide to help you make your first purchase in 2025. We've updated all information to reflect current market conditions, Microsoft's strong performance in fiscal year 2025, and Robinhood's latest features.

Be sure to check out our video below on how to buy Microsoft stock!

Research Microsoft

Before purchasing any stock, the first and most crucial step is conducting thorough research. Microsoft released its fiscal year 2025 results showing strong growth across all segments, driven particularly by its AI and cloud computing leadership.

Some key areas to focus on:

• Check Financial Reports: Review Microsoft's impressive FY25 results including revenue of $281.7B (15% growth), Azure growth of 39%, and Microsoft Cloud revenue reaching $46.7B (27% growth). These can be found on Microsoft's Investor Relations website or financial news platforms.
• Analyze Market Performance: Investigate how Microsoft stock has performed over time, including strong 21% growth in 2025 outperforming many major tech giants this year. Microsoft has shown remarkable resilience even during market volatility.
• Understand Industry Trends: Consider the broader tech industry and Microsoft's place within it. Examine how Microsoft leads in cloud computing, AI integration (through its Azure OpenAI partnership), and enterprise solutions. Microsoft's commitment to building the AI infrastructure for the enterprise market has positioned it strongly for future growth.
• Review Expert Opinions: Follow analyst reports to get expert insight into Microsoft's valuation. Currently, analysts maintain a "Moderate Buy" consensus rating with an average price target around $619, suggesting approximately 20% upside potential from current levels.

Microsoft Stock Performance Snapshot

As of October 2025, Microsoft continues to demonstrate strong financial performance:

• Current Price: $513.42
• 52-Week Range: $382.45 - $521.89
• Market Cap: $3.82 Trillion
• YTD Performance: +21.3%
• P/E Ratio: 37.3

Microsoft's AI and Cloud Leadership

What makes Microsoft particularly compelling in 2025 is its strategic positioning in the AI revolution. Unlike many competitors, Microsoft isn't just experimenting with AI—it's built the infrastructure that powers the AI revolution.

Key growth drivers include:

• Azure AI Integration: Microsoft's Azure cloud platform has become the preferred enterprise AI infrastructure, with 95 of the Fortune 100 companies using Azure AI services.
• OpenAI Partnership: The strategic investment in OpenAI continues to deliver dividends, with Copilot now integrated across Microsoft's entire product suite.
• Enterprise Adoption: Businesses worldwide are rapidly adopting Microsoft's AI solutions, with enterprise cloud bookings up 32% year-over-year.
• Sticky Ecosystem: Microsoft's integrated approach (Office 365, Windows, Azure, GitHub) creates a powerful ecosystem that's difficult for customers to leave.
• Margin Expansion: As AI services scale, Microsoft is seeing improved margins across its cloud business, with operating margins expanding to 48% in the cloud segment.

These strategic advantages position Microsoft as a long-term leader in the AI economy, not just a short-term beneficiary of the current AI hype cycle.

Choose A Brokerage Platform

Once you've decided to invest in Microsoft, the next step is to choose a brokerage platform. There are a variety of online brokerage accounts to choose from, each offering different features, fees, and platforms.

Popular brokerage platforms include Fidelity, Charles Schwab, TD Ameritrade, Robinhood, and E*TRADE. Each platform has different strengths:

• Robinhood: Best for beginners, mobile-first experience, fractional shares down to $1, commission-free trading, Robinhood Social community features, and Robinhood Gold premium features ($5/month)
• Fidelity: Best for research and educational resources, no minimums, strong retirement options, fractional shares available
• Charles Schwab: Excellent research tools, broad range of investment options, strong customer service, retirement planning tools
• E*TRADE: Powerful trading platform (Power E*TRADE), good research, strong mobile app, retirement options
• Webull: Advanced charting tools, extended hours trading, paper trading, detailed market analysis

We're going to be using Robinhood to buy Microsoft stock due to its user-friendly interface, fractional shares capability, and Robinhood Social community features that help investors learn from others. This platform allows you to invest as little as $1 into Microsoft stock, making it accessible for beginners.

Open a Robinhood Account

Robinhood is a trading platform that offers stock, ETF, options, and cryptocurrency trading. It's known for its mobile-first approach and fractional shares capability.

To sign up, visit the official Robinhood website or download the mobile app. You'll need to provide basic personal information, including your name, address, date of birth, and Social Security number for verification purposes.

If you're looking to learn more, here's our full guide on how Robinhood works for beginners.

Deposit Funds

In order to buy a stock, you will need to have funds in your brokerage account.

Robinhood offers an instant deposit feature, which means you can invest your money immediately before it settles. Without Gold, you can access up to $1,000 instantly. With Gold membership, you can access up to 3x your portfolio value (typically $5,000+).

Here's how to deposit money into Robinhood:

1. Open the Robinhood App
2. Click on "Portfolio" in the navigation bar at the bottom
3. Click on the black "Deposit" button at the top right
4. Choose the bank account you want to deposit funds from (or link a new account)
5. Enter the dollar amount you would like to transfer
6. Click on the black "Review" button
7. Click on the "Confirm" button after confirming details

Once you initiate this deposit, you'll get access to a portion of these funds immediately through the instant deposit feature. The exact amount depends on your account status and history.

Search For Microsoft Stock

You are now ready to invest!

Here's how to buy Microsoft stock in the Robinhood app:

1. Open the Robinhood App
2. Click on the Search Icon (magnifying glass) in the top right corner
3. Enter the stock symbol (MSFT) or search for "Microsoft" by name
4. Click on the Microsoft stock listing
5. Click on the green "Trade" button at the bottom
6. Select "Buy" from the options
7. Enter the dollar amount you want to invest (or shares if preferred)
8. Choose between "Market" or "Limit" order (Market executes immediately at current price)
9. Click on the green "Review" button
10. Swipe up to submit the order

That's it! Just like that, you've become an investor in Microsoft stock using Robinhood.

You can now monitor your investment over time in the app. It's important to stay up to date on news and events related to any companies you invest in. This includes tuning in to quarterly earnings reports, for example.

Microsoft Dividend Information

On Robinhood, you can:

• View upcoming dividend payment dates on the Microsoft stock page
• Set up dividend reinvestment through your account settings (DRIP)
• Track dividend history and growth trends
• Receive notifications about dividend payments
• View dividend income in your account statements

Microsoft's consistent dividend growth makes it a valuable component for long-term income portfolios, even with its relatively modest current yield.

Tax Considerations

Understanding tax implications is crucial for any stock investment:

• Long-Term vs. Short-Term Gains: Holding Microsoft stock for more than one year qualifies for favorable long-term capital gains rates (0%, 15%, or 20% depending on your income), while selling before one year is taxed at your ordinary income tax rate
• Dividend Taxation: Microsoft dividends qualify as "qualified dividends" for most investors, taxed at the same favorable long-term capital gains rates
• Tax-Loss Harvesting: If you have losing positions in other investments, you can offset gains from Microsoft sales (up to $3,000 against ordinary income)
• Account Type Matters: Consider holding Microsoft in a tax-advantaged account (IRA, 401k) if you expect significant appreciation, as dividends and capital gains grow tax-free in these accounts
• Record Keeping: Robinhood provides year-end tax statements (Form 1099-B), but you should track your cost basis for any shares purchased at different prices

For most investors just starting out, regular brokerage accounts are fine, but as your portfolio grows, consider consulting with a tax professional about optimal account structures for your investments.

Robinhood Features

Robinhood has introduced several significant features recently that enhance the investing experience:

• Robinhood Social: A community feature where you can follow other investors, see verified trades, and discuss strategies with the community
• Robinhood Cortex AI: AI-powered investment insights that analyze market trends and provide personalized recommendations based on your portfolio
• Robinhood Legend: An advanced desktop platform with professional-grade charting tools, multi-screen layouts, and more advanced order types
• Short Selling: Now available to all users with a margin account, allowing you to profit from price declines (with significant risk)
• Futures Trading: Expanded futures offerings including major indices and commodities
• Multiple Brokerage Accounts: Option to create separate accounts for different investment strategies (e.g., retirement, income, growth)
• Simulated Returns: Modeling tool that shows potential outcomes based on different market scenarios
• Offset Carbon Footprint: Optional feature to automatically offset the carbon footprint of your investments

These features, particularly Robinhood Social and Robinhood Cortex AI, can help you make more informed decisions about your Microsoft investment by providing context and community insights.

Robinhood IRA Options

For long-term investors, Robinhood offers Individual Retirement Account (IRA) options with attractive benefits:

• Traditional IRA: Contributions may be tax-deductible, taxes deferred until withdrawal
• Roth IRA: Contributions made after-tax, but qualified withdrawals are tax-free
• 2025 Contribution Limits: $7,000 for those under age 50, $8,000 for those age 50+ (catch-up contribution)
• IRA Match: Robinhood Gold members receive a 3% match on IRA contributions (1% without Gold)
• Multiple Accounts: You can open up to 4 IRAs total (2 Traditional, 2 Roth)
• Investment Options: IRAs support the same investments as regular brokerage accounts (stocks, ETFs, options)

Adding Microsoft to your IRA can be a strategic move given its strong growth prospects, as any dividends and appreciation will grow tax-free (Roth) or tax-deferred (Traditional) until withdrawal.

Risk Management and Portfolio Considerations

Responsible investing requires careful risk management:

• Position Sizing: Most financial advisors recommend not allocating more than 5-10% of your portfolio to any single stock
• Dollar-Cost Averaging: Consider investing a fixed amount regularly (e.g., $100 monthly) rather than a lump sum to reduce timing risk
• Stop-Loss Orders: Set automatic sell orders at a predetermined price level (e.g., 15-20% below purchase price) to limit downside
• Market Orders vs. Limit Orders: Market orders execute immediately at current price but limit orders let you specify your desired price
• Long-Term Perspective: Microsoft has weathered multiple market cycles; maintaining a 5-10 year horizon increases your probability of success
• Correlation Awareness: Since Microsoft is a tech stock, consider balancing with non-correlated assets in other sectors

Microsoft's strong balance sheet, diversified revenue streams, and leadership in multiple high-growth markets make it a relatively lower-risk stock among growth companies, but all stocks carry risk.

After You Buy Microsoft Stock

Once you've purchased Microsoft shares, here's what to do next:

• Monitor Your Investment: Check the MSFT stock page regularly for price movements and news
• Set Price Alerts: In Robinhood, set up price alerts for specific Microsoft price levels you're interested in
• Follow Earnings Dates: Microsoft typically reports quarterly earnings in late January, April, July, and October
• Read Earnings Reports: Review Microsoft's earnings results and listen to the earnings call replay for insights
• Stay Updated: Follow Microsoft news through Robinhood's news feed or trusted financial news sources
• Consider Dividend Reinvestment: Enable DRIP (Dividend Reinvestment Plan) to automatically buy more shares with dividends
• Regular Review: Periodically assess whether Microsoft still fits your investment goals and strategy

Remember that successful investing is a marathon, not a sprint. Microsoft has been a strong performer for decades, but its stock has experienced volatility along the way. Staying informed while maintaining a long-term perspective is key.

Common Microsoft Investment Mistakes to Avoid

Even experienced investors can make mistakes with Microsoft stock:

• Chasing the Hype: Don't buy Microsoft based solely on AI headlines without understanding the business fundamentals
• Ignoring Valuation: Microsoft's P/E ratio of 37.3 is higher than its historical average; consider dollar-cost averaging if concerned about price
• Panic Selling: Microsoft stock has dropped significantly during market corrections (e.g., 30% in 2022) only to recover and reach new highs
• Overconcentration: Avoid having more than 10-15% of your portfolio in any single stock, even a strong company like Microsoft
• Neglecting Diversification: Microsoft is a tech giant, but consider balancing with other sectors for more stable returns
• Timing the Market: Trying to buy at the absolute bottom or sell at the peak is extremely difficult; focus on long-term ownership instead
• Ignoring Dividends: Microsoft's dividend growth contributes significantly to total returns; consider reinvesting dividends

By understanding these common pitfalls, you can make more informed decisions about your Microsoft investment.

Frequently Asked Questions

What is Microsoft's stock symbol?

Microsoft's ticker symbol is MSFT, which stands for "Micro-Soft".

How much money do I need to start investing in Microsoft?

With Robinhood's fractional shares feature, you can invest as little as $1 in Microsoft stock. This makes it accessible even for beginner investors with limited capital.

Does Microsoft pay dividends?

Yes, Microsoft pays quarterly dividends currently at $0.91 per share. The company has consistently increased its dividend for 19 consecutive years, making it a reliable income source for investors.

Is Microsoft stock a good investment in 2025?

Based on current analyst consensus, Microsoft remains a strong investment with a "Moderate Buy" rating and an average price target suggesting approximately 20% upside. The company's leadership in AI and cloud computing, strong financial position, and consistent dividend growth make it a compelling choice for long-term investors.

Can I invest in Microsoft through a retirement account?

Yes, Robinhood offers both Traditional and Roth IRA options where you can invest in Microsoft stock. Gold members also receive a 3% match on IRA contributions.

What are the fees for buying Microsoft stock on Robinhood?

Robinhood charges no commission fees for stock trading. However, there may be regulatory fees and exchange fees that amount to a few cents per trade. Robinhood Gold costs $5 per month or $50 annually for premium features.

How do I sell my Microsoft stock?

To sell Microsoft stock, follow the same process as buying but select "Sell" instead of "Buy" at the trade screen. Be aware of tax implications—holding for more than one year qualifies for favorable long-term capital gains rates.

What hours can I trade Microsoft stock?

Regular trading hours are 9:30 AM to 4:00 PM ET. Robinhood also offers extended hours trading (pre-market 7:00-9:30 AM and after-market 4:00-8:00 PM ET) for Microsoft and other stocks.

Final Thoughts

Microsoft remains one of the most compelling long-term investments in the technology sector, with its leadership position in cloud computing, AI infrastructure, and enterprise software. The company's strong financial performance, consistent dividend growth, and strategic positioning in the AI revolution make it a cornerstone holding for many portfolios.

By using Robinhood to invest in Microsoft, you gain access to a user-friendly platform that makes investing accessible with fractional shares and commission-free trading. Whether you're investing $10 or $1,000, you're participating in Microsoft's growth journey.

Remember that all investing carries risk, and past performance doesn't guarantee future results. Maintain a long-term perspective, practice good risk management, and continue educating yourself as you build your investment portfolio.

As of 2025, Microsoft continues to demonstrate why it's been a market leader for decades—with vision for the future, execution capabilities, and adaptability to seize the next major technology wave.