Google Becomes #2 Most Valuable Company in Tech

Great news for Google: They’ve just become the 2nd most valuable company in the tech industry, based on their market capitalization. Apple took the crown from Microsoft, and currently holds the top spot at over $622 billion in market cap, after recovering from a slip in share prices earlier this year. That puts them well above the record $619 billion market cap set by Microsoft in 1999, whose market capitalization now stands at a measly $247.27 billion.

Google’s share price has been on an upward trend all summer long, rising 30 percent and peaking at $761.68, bringing their total market capitalization to $248.89 billion dollars, almost a billion dollars more than Microsoft’s. The increase in their share price has been attributed to improved earnings reports and a bullish outlook report from Citi, which raised the price target for Google stock to $850, up from $740.

Analysts believe that Google’s stock will continue to rise based on increased spending on advertising, and an improving situation at newly-acquired Motorola, which has been the result of massive streamlining operations. To date, they have cut around 4000 jobs and closed a third of their offices around the world. There doesn’t seem to be much in the way of downsides, according to analysts. Competition doesn’t seem to be an issue, and despite its partnership with Facebook, Bing has yet to put a dent in Google’s market share.

The only real threats come in the form of regulatory issues, integration of the newly acquired Motorola, and their mobile ad services, but the effect they will have on the company, and how they plan to address them remains to be seen.