On Monday, Google Inc. surpassed Microsoft Corp. to become the world’s second-largest technology company behind Apple. The Washington Post reports that Google’s stock rose 0.7% to $759.98 for a market capitalization of about $249.2 billion. Microsoft, however, dropped 0.3% to $29.67 a share, for a market capitalization of about a $248.7 billion.
One of the main reasons for this is that the internet’s increasing abilities and features are reducing the need for more complicated software (Microsoft’s forte) to be installed on computers. In addition, Google’s search advertising business has grown immensely and there has been a lot of hype over its growing wireless program. With all of this knowledge, Google’s stock price has risen 48% in the last year alone.
In May 2010, Apple became the world’s largest technology company when it overtook rival Microsoft. Apple still sits high above the competition, but Google’s rapid growth and new projects on the horizon may mean that there could be some competition for the top spot in the coming years.
As reported by CNN, Google’s stock hit a record high of $750.04 in late trading Monday. The stock reached $747.84 around noon Eastern Time, passing a previous all-time high set in November 2007 of $747.24. During the economic crisis in 2009, Google’s shares traded below $300 and investors worried that Google had peaked.
Today, Google continues to provide the most dominant search engine with over 65% of search traffic according to published studies (though our data suggests as high as 80%). Google has also ventured into dozens of additional niches including: Android (software for mobile phones), Google Maps, Google Apps (cloud based tools for business), display advertising and Google+ (a social network that competes with Facebook). Google generated $38 billion in revenue last year alone. Not bad for a company that supposedly peaked in 2009!