My, how you’ve grown, Google.
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It’s Official, Google is more valuable than Microsoft.
The search giant’s market value eclipsed Microsoft on Monday on the Nasdaq, with Google now worth US$249.1 billion, compared to its rival’s $247.2 bn market capitalisation.
Google is now the No. 2 richest tech company by market cap, behind Apple’s astounding $625 bn value.
Google shares are now at an all time high of $ 761.20 on the Nasdaq Monday, up 1%. At one point yesterday, Google shares hit a phenomenal $765, an almost 8% jump.
Meanwhile over at Redmond based Microsoft, shares were depressingly low by comparison at just $29.50, dropping -0.27% Monday.
Microsoft is set to launch its Windows 8 OS later this month, tipped to give the company the resurgence it so desperately needs in the mobile-centric 21st century.
Internet giant Google recently celebrated its 14th birthday. So how has such a young company surpassed the former tech stalwart so quickly?
One word. Mobile.
Google’s Android OS may not be a massive money spinner by itself, but having a strong foot in the mobile market lets it run all of its services – Maps, Search, Gmail, YouTube and Apps – on smartphones, and earn bucket-loads on ads.
Google Android OS controls around 65-68% of the mobile market, according to IDC, with Samsung, HTC, LG, Sony and Moto all running the green man software on their devices.
Heck, it even managed to knock Apple off the top smartphone spot, even though Android operated devices was released well after the iPhone’s birth in 2007.
Search-wise, the Silicon Valley darling controls over 66% of the market, compared to Microsoft’s paltry 16%, although the Redmond tech co, like Apple, was also there long before anyone heard of Google.
Microsoft’s biggest mistake was not looking ahead and recognising mobile was the next big thing after PCs, and it is now paying the price. Literally.
“Internet stocks have grown up,” declared MarketWatch’s John Prestbo after the symbolic event occurred on the Nasdaq.
Other winners on the Internet stock front, of late, include eBay, Amazon, LinkedIn and Salesforce.
Tech is also the new darling among keen eyed investors, and Dow Jones’ Technology Index is up almost 22% and ranks third among the 10 top industries, Prestbo noted.