Google tops Microsoft, becomes second most valuable tech company

By on October 1, 2012, 5:00 PM

Google is now the second most valuable technology company in the world, bumping Microsoft to bronze status earlier this morning. Google stock value increased 0.7 percent to $759.98, giving the search giant a market capitalization of roughly $249.2 billion. Microsoft, on the other hand, dropped 0.3 percent to $29.67 per share, resulting in a valuation of about $248.7 billion according to Bloomberg.

Wedge Partners Corp. analyst Martin Pyykkonen says the shift is an obvious sign that the PC hardware business is struggling. He further points out that the transition is pretty straightforward in terms of where things have moved to – that of course being the web and the cloud.

ComScore research shows Google enjoys a 66 percent share of the US search market while Microsoft trails far behind at only 16 percent. Furthermore, the company is expected to overtake Facebook sometime this year as the biggest outlet for display advertising on the web; EMarketer says Google will retain the top spot in mobile ads this year.

Google owns a majority share of the mobile operating system landscape as well. According to Gartner, Android powered 64 percent of smartphones in the second quarter – an increase of more than 20 percent compared to the same time frame just a year ago. For comparison, Apple’s iOS placed second with a 19 percent share of the market while Microsoft has only managed to capture 2.7 percent.

Apple remains the world’s most valuable tech company with a valuation of $632.9 billion. Cupertino surpassed Microsoft in 2010 led by success of the iPhone and iPad.




User Comments: 11

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ReederOnTheRun ReederOnTheRun said:

Rock on, now get Google fiber moving across the country already!

1 person liked this | KbloodyK KbloodyK said:

I freaking love google! they deserved it!

-The KbloodyK

Guest said:

Though I am pro-market I find such huge valuations of these companies to be very unnerving. A company that generates only a few billion a year and is in an industry as capricious as software and Internet search is not really an attractive stock to me. Again odd for me because I generally favor supposedly risky stocks. It must be the fact that so many simpleton financial "advisors" claim that GOOG and AAPl are smart stocks and are safe.

avoidz avoidz said:

If only bought some Google stock back in the late 1990s. Even though they were clearly the best at what they did back then (simple search), who knew the bubble would burst and which tech companies would emerge unscathed.

1 person liked this | Guest said:

Congratulation Google! You are really my favorite company.

ReederOnTheRun ReederOnTheRun said:

Though I am pro-market I find such huge valuations of these companies to be very unnerving. A company that generates only a few billion a year and is in an industry as capricious as software and Internet search is not really an attractive stock to me. Again odd for me because I generally favor supposedly risky stocks. It must be the fact that so many simpleton financial "advisors" claim that GOOG and AAPl are smart stocks and are safe.

I wonder how your portfolio is doing with that logic.

RajeGera RajeGera said:

Microsoft has always been way ahead in producing tools n softwares for developers by which it industry gained immensely.Big Respect!!(I favor Google over Bing at searches.)

Guest said:

"Though I am pro-market I find such huge valuations of these companies to be very unnerving. A company that generates only a few billion a year and is in an industry as capricious as software and Internet search is not really an attractive stock to me. Again odd for me because I generally favor supposedly risky stocks. It must be the fact that so many simpleton financial "advisors" claim that GOOG and AAPl are smart stocks and are safe."

--->"A company that generates only a few billion a year and is in an industry as capricious as software and Internet search is not really an attractive stock to me"

yes, we can see how "pro" you are.. you may find google stock isn't attractive, but you're laughstock unable to see the bigger picture

TJGeezer said:

"Unnerving" is not a "don't buy" assessment. It hardly seems to merit a "laughstock" (whatever that is) description of someone for noticing how out-of-whack these valuations have been getting. Not sure how much they actually mean, aside from clearly reflecting major herd movements.

Zecias said:

Though I am pro-market I find such huge valuations of these companies to be very unnerving. A company that generates only a few billion a year and is in an industry as capricious as software and Internet search is not really an attractive stock to me. Again odd for me because I generally favor supposedly risky stocks. It must be the fact that so many simpleton financial "advisors" claim that GOOG and AAPl are smart stocks and are safe.

a FEW billion(http://investor.google.com/financial/tables.html) right......

Google is also constantly expanding into different markets(usually with a good amount of success). They have done a great job of expanding their business and keeping themselves relevant. Investing in a company with continuous growth and an undying presence in many markets is never a bad thing.

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