Google Inc (GOOG) vs. Microsoft Corporation (MSFT): Who Wins, Really?

Page 2 of 2

Google’s 25.5 P/E multiple may lift eyebrows a little. However what’s behind Google is that it is solely focused on growth. With Google’s commitment to Google Glass, Android Play Store, and Google Fiber clearly demonstrates to investors that the company will expand its business portfolio even at the risk of sacrificing profit margins. Investors and analysts alike are hoping for growing cash flows even at the expense of flattening margins (just look at Amazon). Anyhow, Google Inc (NASDAQ:GOOG)’s in a strong position and its valuation is well deserved. Bravo, Google.

Alexander Cho has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google and Microsoft.

The article Google Worth More Than Microsoft, Why? originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2