Two of the biggest players in technology are Microsoft and Alphabet, Google’s parent company. While both companies have significantly impacted the tech industry, they have taken different paths to get where they are today. Microsoft, founded in 1975, has long been associated with personal computing and business software.
On the other hand, Alphabet, founded in 2015, has made its name the dominant player in search and advertising. Despite their differences, both companies are now among the most valuable in the world, with a combined market capitalization of over $2.5 trillion.
2023 has seen a surge in interest surrounding artificial intelligence (AI), with many recognizing its potential.
After all, it’s easy to understand why, as technology allows us to achieve digital feats that otherwise felt impossible. Several tech giants, such as Microsoft and Alphabet, have been competing intensely to become the leader in the field.
Microsoft has attracted great attention in the wake of its unveiling of the AI-powered Bing search engine and Edge browser.
The recently released search engine and Edge browser are anticipated to provide upgraded search outcomes, full replies, a fresh chat experience, and an all-around significantly smoother web browsing experience.
Recently, Alphabet has presented their new LaMDA (language model for dialogue applications)-powered conversational AI service called Bard. This technology is the result of their next-generation development.
Bard is expected to deliver high-quality responses drawn from the web, pairing the globe’s knowledge with the power of Alphabet’s LaMDA.
A pertinent inquiry is: which shares seem the more appealing when two firms are pitted against one another? Let us examine this further.
By examining the price movements of each company over different periods, we can better understand which stock investors have favored.
MSFT has seen a setback of 11% in the past half year, which is far better than GOOGL’s 22% decrease.
In terms of performance over the last year, Microsoft (MSFT) has outperformed Google (GOOGL), with a 7.5% return compared to the latter’s 6.6% increase.
Over the past six months, MSFT shares have been a favorite among purchasers and are projected to remain so in 2023.
When making an important investment decision, assessing the company’s value is paramount since many investors avoid companies with high market valuations.
At present, Alphabet’s stock is trading with a price to forward earnings ratio of 18.6, significantly lower than its five-year median of 26.2.
While Microsoft and Alphabet have significantly impacted the tech industry, they are distinct companies with different strengths and weaknesses. Microsoft’s dominance in personal computing and business software is undeniable. The company has made significant strides in recent years to diversify its business with the growth of its cloud computing services.
Meanwhile, Alphabet’s Google continues to be the undisputed leader in search and advertising, and its other ventures, such as Waymo and Verily, offer exciting opportunities for future growth.