Google becomes world's second most valuable tech company

Google leapfrogs Microsoft in value thanks to Android

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Much has been said about Apple's dominance as the world's most valuable company, but what about the runners up? The final two spots on the technology podium are fiercely contested, with Google finally toppling long-time runner up Microsoft.

At the close of trading on Monday, Google (GOOG) finally hurdled over Microsoft's (MSFT) value, hitting $US249.1 billion compared to Redmond's $US247.2 billion.

Google vs Microsoft 6 month value graph

Impressively, this feat was accomplished against a Microsoft on the upward trend, having had share prices rise 20 per cent over the past year.

But Google's rise has been significantly larger and faster, jumping more than 30 per cent since June and showing no signs of slowing down.

Powerful Android

The reason for Google's meteoric rise to the number two position has a lot to do with the company's Android platform, which is enjoying 1.3 million new activations every day.

While Microsoft is gearing up for the launch of Windows 8, the new operating system isn't exciting users or shareholders in quite the same way that Android is exciting mobile users, especially when more than half of Windows 8 users prefer the previous version.

The disappointing build up for WIndows 8, coupled with the uninspiring performance of Windows Phone, has opened the door for Google to overtake Microsoft in value.

Android's growth is even more important to Google in the long term, as more and more people begin to transition to a mobile-centric web experience.

With rumours of a new Nexus handset announcement in the coming weeks, as well as discussions of the next version of Android, Key Lime Pie, expect Google to extend its position over Microsoft in the value stakes.

Via: Wired