Rivals Edge Out Microsoft

Microsoft is feeling the squeeze as its rivals Google and Apple have officially surpassed Microsoft’s sharemarket value.

Apple beat Microsoft in 2010 and Google has just edged out Microsoft. This week, Google’s market capitalization is now at US$249.19 billion, about two billion more than Microsoft’s US$247.44 billion.

Microsoft was once the most dominant tech company in the world. Its shares, however, stagnated over the years as new players in the industry emerged. Industry observers also see Microsoft as beholden to the PC, a device that is no longer as popular as tablets and smartphones.

Microsoft also couldn’t seem to find its flagship product similar to Apple’s iPhone and iPad. Its search engine Bing is not making money and is a distant second to Google’s search engine.

Google, meanwhile, has not only edged Microsoft but other big companies. The search engine company has also surpassed Wal-Mart Stores. This makes Google the third most valuable company, next to Apple and Exxon Mobile.

Google also continues to generate income like display and mobile advertising. Its earnings, however, continue to be search ads. Still, Google continues to experiment and offer other services like Google Maps, Groupon-style services, self-driving cars, and more.

Industry analysts forecast that Google will topple rivals Yahoo! and Facebook in terms of online display advertising.