Yesterday (Monday 1st October) Google overtook Microsoft, in terms of market value for the first time. Google is now worth $249 billion with Microsoft just behind at $247 billion. The success of Google is partly due to the success of its smartphone operating system, Android, which is the leading smartphone platform. Android has a global smartphone market share of almost 60% which equates to over half a billion devices activated. The increased use of mobile devices, which has driven Google forward, has also acted as a blow to Microsoft. People are using personal computers, which Microsoft is synonymous with, less and mobile devices much more.
However Google’s advertising products remain the companies main source of income. AdWords, the advertising platform that appears at the top of Google search results, is completely compatible with mobile devices. Meaning that unlike Facebook, Google has easily adapted to the huge rise in mobile browsing. This has given investors confidence that Google will remain relevant in the future and continue to rake in ad revenue, something which Facebook and Microsoft have struggled with.
Google is now the second richest tech company, trailing only Apple which is the largest public company by a long shot with an estimated market value of over $600 billion. Many experts are predicting a further rise in the value of Google stock in the coming months, which has already enjoyed a 65% gain since July 2010.
As well as being the second most valuable tech company it is the third overall, after Apple (obviously) and Exxon Mobil.
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