Satya Nadella became CEO of Microsoft (MSFT -1.90%) 11 years ago this month. At the time, he took over a software giant whose Windows operating system had been eclipsed by the rise of the smartphone.
However, it was Nadella’s reduced emphasis on the once-critical Windows operating system that revived Microsoft stock. Thanks to his leadership, Microsoft again plays a relevant role in the tech industry, and this has benefited shareholders of the SaaS stock tremendously.
The growth of Microsoft stock
If you had invested $1,000 in Microsoft when Nadella became CEO on Feb. 4, 2014, those shares would now be worth just over $11,100. If you include dividends, that value rises to around $13,500.
Nadella’s rise to the CEO position occurred as the company’s stock fell during the 14-year tenure of Steve Ballmer. At that time, Microsoft suffered after the rise of the smartphone reduced the need for PCs, making the dominance of its Windows operating system less relevant.
Nadella had previously served as executive vice president of Microsoft’s Cloud and Enterprise Group. When he became CEO, Nadella capitalized on his successes with this business segment, emphasizing cloud computing and reducing the emphasis on operating systems by discontinuing the Windows Mobile OS. Those moves proved successful as its Azure cloud platform became the leading competitor to Amazon Web Services in the cloud computing industry.
Nadella has also made some notable acquisitions, including the business social media platform LinkedIn and gaming giant Activision Blizzard. Additionally, it acquired GitHub, which was recently responsible for the development of Microsoft’s artificial intelligence (AI) platform, Copilot.
Amid such developments, Microsoft succeeded to the point that it briefly regained its title as the world’s largest publicly traded company measured by market cap. Even if it isn’t necessarily holding its title as the world’s largest company, its stock gains are unlikely to end anytime soon as it solidifies its leadership across multiple software segments.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
