According to latest reports published yesterday, Microsoft has now surpassed Google’s parent company Alphabet in terms of market value. Microsoft is now worth $749 billion, and the software giant has become the world’s third most valuable firm. The company has managed to overtake Google’s parent company Alphabet and secured the third position.
While Microsoft is now worth $749 billion, Google’s parent company Alphabet worth is $739 billion market value and it holds the fourth spot in the charts. Apple is still the most valuable company and Amazon holds the second position.
Both Microsoft and Google’s parent company Alphabet experienced a minor decline this week but the bigger drop recorded by Google apparently helped Redmond-based Microsoft. On Tuesday, Satya Nadella’s Microsoft managed to overtake its long-time rival. Both firms are now only trailing behind Apple and Amazon.
Surpassing Alphabet in terms of market value has taken Microsoft nearly three years with stringent competition from Alphabet which has enjoyed a comfortable lead since 2015. Both Microsoft and Alphabet are already in the race to become the first trillion dollar company with stiff competition from Apple and Amazon.
Microsoft’s focus on cloud and services such as Azure contributed to the company’s market value, and while Google is also betting big on its cloud services, it’s not as popular as Azure.
The analysts believe that Microsoft could achieve the 1 trillion market cap by end of 2018, and if the growth of its cloud business (Azure) continues at this pace, the company could double its market value in a few years. Apple is also in the race to become the world’s first one trillion-dollar company and it has been considered the leader but given the recent growth of Microsoft, the software giant is well positioned to achieve this historical milestone first.
It remains to be seen as to which company ends up being the first to be valued as a trillion dollar company. Microsoft has been able to garner more market share with the company concentrating on Cloud computing, Artificial Intelligence, Speech recognition and more.