A bit of comparison between Microsoft and Google. Both are leading technological company. But how will they perform in the future?
You may very well own Microsoft (MSFT) -- it's one of the most widely held stocks in the country. Now can you honestly explain to me how the world's leading software company will be as relevant in 2012 as it is in 2009?
Sure, there will be a wider audience of computer users in three years, but they aren't as likely to rely on Microsoft. Between open-source operating systems, free cloud-computing knockoffs of Microsoft Office, and a growing number of Web browsers, Microsoft will only continue to relinquish market share in many of its high-margin businesses. I can see MSN finally turning a profit by then. The company's Xbox franchise could definitely be more relevant. However, by and large, Microsoft will never be as important as it used to be. It has a crosshairs tattoo, and everyone is taking a shot.
The other side of the Microsoft coin is Google (GOOG). Now, here is a company that can clearly matter more in three years. The leading search engine is growing revenue and market share, even as the global ad market is faltering. It may be retreating out of old-school ad markets like print and radio, but its role as a localized lead generator will only improve in time.
Bottom line, for the past few years Microsoft has been slowly losing the market share, while Google has been adopting great business decisions and innovative organizational culture which continues to strenghten their market position.
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