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Fortune
Fortune
Catherina Gioino

Microsoft's IPO turns 40 today. If you invested $1,000 in Microsoft in 1986, you’d have $5.5 million today

Microsoft Corp. signage at the Nasdaq MarketSite in New York, US, on Wednesday, Dec. 24, 2025. A relatively quiet session on Wall Street before Christmas saw stocks hitting all-time highs, with more signs the jobs market is not quickly deteriorating supporting bets on a soft economic landing. Photographer: Michael Nagle/Bloomberg via Getty Images (Credit: Michael Nagle/Bloomberg via Getty Images)

It began with a simple magazine cover, and then involved into one of the most valuable companies on the planet with technology that is used in virtually every part of daily life. 

In January 1975, Bill Gates and Paul Allen spotted the Altair 8800 personal computer on the front of Popular Electronics and saw something most people didn’t: a machine desperately in need of software. That realization became Microsoft, a portmanteau of “microprocessors” and “software,” sometimes hyphenated in its earliest days as “Micro-Soft.” What started as a two-person operation in Albuquerque, New Mexico would, over the next five decades, reshape how the entire world not only works, but communicates, plays, and builds.

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