Microsoft surpassed the Alphabet for the first time in three years and made it the third largest company in the world

Microsoft CEO Satya Nadella
For the first time in three years, Microsoft's valuation goes beyond Alphabet, Google's parent company. Microsoft now has a valuation of US $ 753 billion while Alphabet US $ 739 billion. This makes Microsoft as the third largest valuation company in the world after Apple and Amazon.

However, possibly, Microsoft's position is only temporary. Google's valuation first exceeded Microsoft in 2012. Since then, both have continued to fight for the position of the world's third-largest company.

Nevertheless, this demonstrates the success of Satya Nadella's CEO in improving corporate valuations since CEO Steve Ballmer resigned.

Since Nadella became CEO of Microsoft four years ago, Microsoft's share value has more than doubled. Nadella changed Microsoft's focus on inter-platform, cloud, artificial intelligence (AI) technology, quantum computing and headset mixed reality (AR and VR).

Nadella also decided to stop making Windows Phone that is considered failed. Since Nadella became CEO of Microsoft, the company also no longer tries to make Windows the center of all its business.

Indeed, Microsoft's valuation is still far behind Apple's valuation of US $ 923 billion or Amazon with the valuation of US $ 782 billion. However, they have a diverse business as a source of revenue.

Google gets 90 percent of its revenue from advertising and the iPhone contributes 60 percent of Apple's total revenue. Meanwhile, revenue contributions from various Microsoft divisions are quite evenly distributed.

In Microsoft's latest financial report, it is known that Windows, Surface and gaming divisions accounted for 35 percent of total revenue while the cloud contributed 30 percent and Office and other productivity applications 30 percent.

Some analysts believe, Microsoft's cloud business could double in the next few years. This will help Microsoft get a valuation of US $ 1 trillion.


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