Google Worth More Than Microsoft

On Monday, Google’s stock market value on the Nasdaq passed that of Microsoft for the first time ever, making it the second richest tech company in the world.

At the close of trading, Google was valued at $249.1 billion (£154.2bn), compared to Microsoft’s $247.2 billion (£153bn). The company is still valued at less than half of Apple’s $628 billion (£388.9bn).

Microsoft has been the dominant force in technology throughout the nineties, with its CEO Bill Gates consistently ranked the wealthiest man in the world from 1995 to 2009, excluding 2008, when he was ranked third.

However, lately the Redmond software powerhouse has failed to excite investors as much as some of its rivals, while Google’s shares have gained over 35 percent in value since June.

Post-PC era

Google had almost caught up with its rival after its IPO back in 2007. However, many investors later pulled out, not convinced that the Internet search giant could make money from YouTube and Android.

According to the Financial Times, this year Google is set to overtake Facebook as the biggest online display advertising company. It is also responsible for over 50 percent of the mobile display advertising business worldwide.

Analysts expected the company to suffer losses after Apple announced it would drop native YouTube and Google Maps support in iOS. This strategy backfired, with users complaining about inaccuracies in Apple Maps and, if anything, served as free advertising for Google’s products. Apple even recommended customers use rival services.

Among the main reasons for the company’s recent success was its ability to capture the imaginations and admiration of smartphone users with Android. Cloud services like Gmail and YouTube were what helped to make Google a household name initially.

In July, the company launched its first branded tablet, the Nexus 7. Made by Asus, the long-awaited seven-inch device costs just £159, and was designed to challenge Amazon’s aggressively-priced Kindle Fire.

Meanwhile, Microsoft has bet everything on the Windows 8 launch, hoping it can make its presence felt in the lucrative tablet and ultrabook market.

Both Google and Microsoft are currently subjects of EU investigations. Google is accused of anti-competitive practices, while Microsoft is blamed for failing to comply with an earlier EU agreement that required it to offer a choice of browsers during Windows installation.

What do you know about Tech stocks and shares? Take our quiz!