When Microsoft was first passed by Google six years ago with regard to stock market capitalization, it appeared like the two companies were headed in distinctly opposite directions.
However, over the last 12 months, Microsoft surged by 40%, which is over five times the gains by Alphabet, and is now the more valuable. As of the close of the market session on Tuesday, Microsoft has a value of $749 billion compared to Alphabet’s $739 billion market capitalization.
The latest rally by Microsoft has been spurred on by the growth of its business of cloud computing, which is larger than that of Google though it is still second to that of Amazon.com’s Amazon Web Services.
This past March, Microsoft carried out a reorganization of its Windows and Devices unit, and it moved its resources of engineering into different units, including one that focuses on artificial intelligence and cloud.
Both of the companies Microsoft as well as Alphabet beat expectations by analysts during the first quarter of 2018 for earnings.
In 2004 Google went public and spent the following eight years inching closer to the gap between it and Microsoft, which in 1986 made its debut on the stock market. Even after Microsoft was first passed by Google during 2012, the two companies flip-flopped back and forth a number of times during the next couple of years.
However, Google, which established Alphabet in 2015 as its parent company, took a much more commanding lead during that year and has held it tightly until now. Microsoft as of the close of business on Tuesday was the third must valuable worldwide publicly traded company.
At this time, Microsoft only trails Apple as well as Amazon. In fourth behind Microsoft is Alphabet while Facebook sits in fifth and Tencent, based in China is sixth.
In Tuesday’s trading session, Microsoft was down 0.4% to end the day at $98.01 while Class A shares of Alphabet fell 1.5% to end the day at $1.068.06.
As the world of technology has taken hold globally, the largest companies in market capitalization are all related directly or indirectly to technology.