Google v MSFT Market Cap Comparison Tells Story



I am not a stock guy. Never have been. I also find discussions about who has the larger market capitalization number equivalent to the “My dad can beat up your dad” playground stuff kids engage in. The following chart, though, is interesting because it tells the story of two companies and gives insight into the larger picture of where we are today in the increasingly digital world we all live in. This come from SAI.

Once Google reached a zenith sometime in 2007 the companies have mirrored each other. They have been slaves to the same market conditions and swings and have acted accordingly. That is until very recently. As Microsoft continues to struggle to make itself into a digital company for the future, the market is starting to see it for what it may very well be: a big company that may not be nimble enough to transform itself for the future.

Google on the other hand is a digital company through and through. While it has sputtered through the social media transition it is at least getting its sea legs with Google+ and a more integrated approach to their product set. As a result their value in the market is recognized and rewarded with an upward push in market cap while Microsoft looks to have evened out or, even worse, reached a point where they may see continued declines.

I suspect that these charts in five years will see Google far ahead of Microsoft in market cap. As I have already said, I am not a stock guy and what you are reading is the “man on the street” interpretation of this chart. It’s fair to say that there are larger trends in place and this year we may see the true parting of ways where Google takes its place ahead of Microsoft for the simple reason that Google is an online company and Microsoft isn’t and may never be.

What’s your thoughts?

  • Guy

    I’ve been watching this competition as well and I expect a huge amount of “news” stories once Google market caps passes Microsoft. Like you I’m not a stock guy, but I do know a few things. Like – Google doesn’t pay dividends. Not sure if that adds or subtracts from a stocks value. I also am waiting for Google to end up in trouble with government similar to what Microsoft just came out of…anti trust investigations. Google is getting awfully big and awfully influential. And, thirdly, I will be very interested to see how huge Windows 8 on tablets is.