Microsoft Becomes More Valuable Than Google

Microsoft named more valuable than Google

Microsoft Becomes More Valuable Than Google

For the first time since 2015, Microsoft has become more valuable than Google and its parent company, Alphabet.


That’s right. Microsoft has been announced as the third most valuable company in the world, receiving a valuation of £566 billion, which makes them slightly more valuable than Alphabet’s £556 billion valuation, and highlights the role that it’s CEO, Satya Nadella, has had since taking over Microsoft just four years ago.


In that time, Nadella has already helped to double Microsoft’s stock price whilst also bringing the company back to the forefront of peoples minds when they think of modern tech icons. One of the main reasons behind this success has been the decision to remove areas of the company that were failing, such as the Windows Phone, and focusing on what they do best; AI and cloud computing.


And it is clear that these decisions have proved to be extremely successful.


However, not only do Google need to be concerned about Microsoft’s recent success, but Amazon will also be looking over their shoulder due to their valuation standing at £588 billion, especially as it is widely thought that Microsoft will be one of the first companies to reach a $1 trillion valuation by the end of the year.


Not surprisingly though, Apple is heading the pack with a market valuation of £694 billion, so it’s highly unlikely that they will be replaced any time soon. However, as 60% of Apple’s revenue comes via iPhone sales, it would only take a reduced volume of sales to see their valuation lower substantially. Microsoft, on the other hand, splits in revenue up via a number of avenues, including hardware, software and services, with recent figures showing that 35% of its revenue comes via Windows, Surface and Xbox, whilst 30% is gained via Cloud services, and a further 30% is received through productivity solutions.


So, when considering this, it would not be a surprise to see Microsoft being named the most valuable company in the world by the end of the decade.


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