When it comes to the top companies in the IT market, keeping the frontrunner place is always a challenge. Google became the second most valuable company in the tech market, outclassing Microsoft.
Google owns the most popular search engine,YouTube and Android, to name only a few of the services responsible for its value and revenue. Microsoft, on the other hand, has lost most of its buzz years ago, but remained in the top. However, Google managed to outclass Microsoft as of yesterday, and is now the second most valuable tech company.
From a wide variety of internet services, social networking, mobile technology to the Android OS, Google has long become a force in the tech market. At Google, innovation is still the rule of thumb, whereas Microsoft has failed to deliver on that same promise. Google is now one step closer to Apple’s tech market throne.
As of yesterday, Google’s market capitalization of $248.89 billion overtook Microsoft’s 247.27 billion. Google closed the day up 0.99 percent at $761.98, whereas Microsoft stock plunged 0.82 at only $29.52. For Google it was just the achievement day of a summer that was great for its stock. The company stock went up by more than 30 percent over the past few months, giving analysts reasons to hope the price target could easily hit the $850 mark.
Analysts say that this transition is quite normal, seeing that Microsoft is now gaining most of its profits, from the Microsoft Office software and Windows, which are meant mainly for the PCs. Google took a step further and made mobile and cloud services its business. The company is at the point that it’s almost impossible to imagine the internet without Google.
“The transition here is pretty straightforward in terms of where things have moved to and certainly that’s cloud, that’s Web”, said Martin Pyykkonen, an analyst at Wedge Partners Corp. in a statement for Bloomberg.
A lot of people have said it before: Microsoft needs to move its business into more profitable and current areas. This tech tycoon has been witnessing its own demise for the past few years, whereas its competitors ravaged the market with tablets, smartphones and apps!