Is Microsoft The Next Google?

Written by Pablo Palatnik on October 30, 2007

It’s funny that the question for so long was “is Google the next Microsoft?” Could this question now be reversed? I’m not a financial analyst but you don’t have to be when you look at what each stock is worth. Now, how much does a stock price say about a company? It speaks volumes on current revenue (not all the time), expected revenue, future outlook, current events, and more.

Goog (Google Stock): $679.23 as of Oct. 30, 2007
MSFT (Microsoft Stock): $34.57 as of Oct. 30, 2007

I pose the question in the title financially. Could Microsoft raise their stock price to that of Google’s at some point? The stock price can’t determine that Google is in fact a bigger company than Microsoft but I believe it to be (or use it as) an indicator or public and future outlook. I’d personally value Microsoft’s stock to be worth more.

Microsoft appears in Forbes Fortune 500 companies at #49 in 2007 & Google at number #241. So, why the craze with Google and why is Microsoft seen as the company that tries to catch up? It comes down to stock price and future outlook.

If you ask the general public which company is bigger, without a question people would answer “Microsoft, of course.” Indeed, it is. The buzz is so loud around the net (blogoshere, news sites, and stock watch) about the Goog, which many see Microsoft as the company that is trailing…and really, it’s only trailing in terms of search.

Let’s look at the latest companies Acquisitions:

2007 Microsoft:
August 30, 2007 -Parlano
July 26, 2007 -AdECN, Inc.
May 18, 2007 -aQuantive, Inc.
May 3, 2007 -ScreenTonic
March 14, 2007 -Tellme Networks, Inc.
February 26, 2007 -Medstory Inc.

2007 Google:
1. 2007-07-09 - Google to Acquire Postini
- Services for Message Security, Archiving, Encryption, and Policy Enforcement
2. 2007-07-02 - Google Acquires GrandCentral Communications
- Services for Managing Voice Communications
3. 2007-06-19 - Google Acquires Zenter
- Online Slide Presentations
4. 2007-06-05 - Google Acquires PeakStream Inc
- Multiprocessor and GPU Software
5. 2007-06-01 - Google Acquires Feedburner
- Feed Distribution and Management Tools
6. 2007-05-30 - Google Acquires Panoramio
- Community Photos Website (Works with Google Earth)
7. 2007-05-11 - Google Acquires Green Border Technologies
- Secure Connections for Web Browsing and Email
8. 2007-04-19 - Google Acquires Marratech - Video Conferencing Software
9. 2007-04-17 - Google Acquires Tonic Systems
- Presentation Creation and Document Conversion Technology
10. 2007-04-13 - Google Acquires Doubleclick
- Advertising Technology Platform
11.2007-03-16 - Google Acquires Trendalyzer
- Presentation Software
12. 2007-03-16 - Google Acquires Adscape Media
- In-Game Advertising for Video Games
13. 2007-01-00 - Google Acquires Xunlei (Partial Acquisition)
- File Sharing Website

With more acquisitions from Google, Microsoft has stated recently to buy 20 small companies a year! ((*Tip: Start something cool and innovative online that could match Microsoft’s portfolio and offer it to them!))

Now the question stands, do you think Microsoft can achieve the Google stock price? Is Google just way over priced? Can MSN someday, somehow, catch up to Google’s search market share, at least catch up? If there is one prediction I can make is this…If Microsoft purchases Yahoo, which I think is very possible, we have a search competition on our hands.