Though is the leader in the internet industry and one of the most significant brands now Microsoft has passed Google (Alphabet) with its market valuation and took the third position. If we compare market value, the Microsoft is now valued at $756 billion and Google (alphabet) which is Google company is at $739 billion.
Microsoft CEO Satya Nadella is starting to look more like Apple and IBM. As we know it’s a window company, most people choose a window and they offer Window 10 free and recover its revenue from cloud computing like Microsoft Azure and Xbox. So these are the strategies to make stable market value.
If we talk about TTM net income from 2011 to 2017. Google reported TTM net income is 8.1 $ billion and Microsoft revenues are $ 21.8 billion. So the profit of the Microsoft was double of that of Google.
Google generates revenue by selling apps, Google Chrome, cloud, digital content in Google Play, Gmail. Google doc, Android operating system for phones, blogger and Google Wallet. And Microsoft makes money from window operating system, Microsoft business, servers and tools like (Microsoft SQL server, Windows iTunes, Visual studios, and window embedded), Entertainment devices like (Xbox, windows phone, Xbox lives’, games and Skype), online services like Bing, Bing Ads, and MSN.
Both companies are providing best services to its users, but if we take a look at operating income which calculated as “operating Revenue = Operating expenses”. As Microsoft is a leader in the software industry its expenses cost is much higher than a Google and even its revenue in a stable position as compared to Google and Microsoft is kept growing so far and according to the CEO Satya Nadella, there is no decline in the revenue and services of Microsoft in future.