Today in market trading, advertising giant Google, Inc. topped Exxon as the second most valuable company in the U.S. Google’s mid-day market cap reached $389.6 billion besting Exxon’s $389.3 billion. Throughout the trading day, Exxon and Google traded punches to land the title of second largest. The number one most valuable company in the U.S. is Apple with a considerable lead of a market value of $464 billion and Microsoft holds the fourth position at $303.5 billion.
Google’s ability to gather data from its users and sell to advertisers has strongly positioned the firm in the market. The trend watchers have seen the battle for second position heat up since 2012. Now the top four positions are a majority of technology and data companies. Young technology companies like Google, which went public in 2004, are pushing past the stalwarts like Exxon, who has been around for 84 years. These young companies have dislodged the monster retailers and energy companies on a world stage and have begun a new era in massive earnings. Oppenheimer & Company analyst, Fadel Gheit, says that these market take overs are a sign of the times as the young companies position themselves on the world markets and dislodge the old.
Google was created by co-founders Larry Page and Sergey Brin as a simple search engine. Page and Brin developed better ways to filter the huge amounts of data on the internet, allowing users to easily search for items of interest. A few short years later Google added e-mail, mapping and calendar service. In 2012, Google announced there were over 425 million Gmail users.
Recently Google has ventured into robotics, artificial intelligence, self-driving cars, mobile phone applications, fiber networks and other arenas that touch our every day lives. Google is uniquely positioning themselves to become an integral part of the human experience and, more importantly, the future of the human experience.
Google topping Exxon and moving into the number two position in market value also indicated the strength of the advertising company against its competitors. While each of the top four companies reported less than anticipated financials for the fourth quarter, Google seems to have been given a pass by investors.
This is perhaps the nod needed to move Google permanently into the number two position of dominance. Since the beginning of the year, Exxon has lost nearly 10 percent of its share value while Google has gained 5.1 percent. Google is also positioning against Apple, which lost a stunning $200 billion in market share since 2012 – the same year that Google surpassed Microsoft’s number three position in market value.
Google has maintained its online advertising dominance with projections to take 41 percent of the digital online ad-market compared to Facebook’s 8.2 percent. Google appears to be dominating in several market arenas and has flexed its market power by topping Exxon, now the world’s second most valuable company. Analyst Frank Gillet with Forrester Research, Inc. stated that investors recognize the power and validity of Google’s digital platform. In 2012, Google passed Microsoft in market value. A year later Google stocks broke the $1,000 per share ceiling and are only $75 billion behind Apple, the most valuable company in the world. The fight for most valuable company will be heating up over the next several years while digital innovation and creativity will become the core values of the market.
By Anthony Clark