Microsoft (MSFT) vs Alphabet (GOOGL)
Microsoft traded near $415 with market capitalization $3.14 trillion. Alphabet traded at $338.89 with market capitalization $4.1 trillion.
Also known as: Microsoft (MSFT) (STK_MSFT, Microsoft) · Alphabet (GOOGL) (STK_GOOGL, Google, Alphabet)
Why This Comparison Matters
Microsoft traded near $415 with market capitalization $3.14 trillion. Alphabet traded at $338.89 with market capitalization $4.1 trillion. The GOOGL/MSFT market cap ratio of 1.31x reflects Alphabet's recent overtaking of Microsoft, driven by Google Cloud acceleration (Q4 2025 +48 percent vs Azure +39 percent) and Gemini's commercial success (750 million MAU). The pair captures a unique competition: MSFT's enterprise-software-and-cloud strength versus GOOGL's search-and-cloud breadth. Both have similar AI-driven Cloud growth trajectories, similar capex commitments ($110-120 billion MSFT vs $175-185 billion GOOGL in 2026), and similar quarterly RPO scales ($625 billion MSFT vs $240 billion GOOGL Cloud).
MSFT and GOOGL: Enterprise vs Internet Anchors
Microsoft is the enterprise software and cloud anchor: Microsoft 365 productivity, Windows, Azure cloud, Xbox gaming, GitHub, LinkedIn, and the OpenAI partnership. The revenue mix is approximately 26 percent cloud, 38 percent productivity software, 13 percent gaming, balance other. Q2 fiscal 2026 revenue $81.3 billion (annualized $325 billion).
Alphabet is the internet anchor: Search, YouTube, Google Cloud, Hardware, Other Bets. Revenue mix is approximately 56 percent search advertising, 14 percent YouTube ads, 12 percent Google Cloud, balance other. Q4 2025 revenue $113.83 billion (annualized $455 billion). The two companies are the largest software-and-cloud companies after Apple, with similar absolute scale but different revenue mix profiles.
The Cloud War: Azure vs Google Cloud
The cloud market share dynamics drive the pair. Q4 2025 / Q2 fiscal 2026: AWS 32 percent (largest), Azure 25 percent (second), Google Cloud 11 percent (third). Both Azure and Google Cloud are growing faster than AWS but Google Cloud has accelerated more aggressively in late 2025: Q4 2025 Google Cloud +48 percent vs Azure Q2 fiscal 2026 +39 percent.
The 9 percentage point growth gap currently favors GOOGL. Google Cloud backlog of $240 billion (more than doubled YoY in Q4 2025) provides 3.4 years of forward visibility. Azure RPO contribution to MSFT's commercial RPO of $625 billion is approximately $300 to $400 billion, providing similar visibility. The two cloud providers are in active head-to-head competition for AI workloads, enterprise migrations, and government contracts. The April 30, 2026 simultaneous earnings will reveal whether Google Cloud sustains its acceleration or whether Azure narrows the growth gap.
AI Strategy: Internal vs Partnership
MSFT's AI strategy is partnership-led: $13 billion invested in OpenAI, 49 percent economic interest, exclusive Azure cloud through 2030. The strategy gives MSFT access to OpenAI's frontier models (GPT-4o, GPT-5) without internal model development costs. ChatGPT's 600 to 700 million MAU provides MSFT with consumer AI exposure through OpenAI.
GOOGL's AI strategy is internal: Gemini developed in-house at Google DeepMind, running on Google's own TPU silicon, with 750 million MAU. The strategy gives GOOGL full control over model development, custom silicon advantages (TPU avoids NVIDIA pricing), and proprietary research depth. The two strategies have produced similar commercial outcomes (Azure +39 percent vs Google Cloud +48 percent) through different paths. The strategic divergence remains the primary differentiator: MSFT depends on OpenAI execution; GOOGL depends on internal AI research and TPU competitiveness.
Conditional Forward Response (Tail Events)
How Alphabet (GOOGL) has historically behaved in the 5 sessions following a top-decile or bottom-decile daily move in Microsoft (MSFT). Computed from 1,283 aligned daily observations ending .
Following these triggers, Alphabet (GOOGL) rises 0.18% on average over the next 5 sessions, versus an unconditional baseline of +0.46%. 127 qualifying events; Alphabet (GOOGL) closed positive in 54% of them.
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Frequently Asked Questions
Is GOOGL bigger than MSFT?+
Yes. Alphabet traded at $338.89 with market capitalization $4.1 trillion. Microsoft traded near $415 with market capitalization $3.14 trillion. The GOOGL/MSFT market cap ratio is 1.31x. GOOGL recently overtook MSFT as the third-largest US public company (behind NVIDIA $5.06T and Apple $4.04T). The crossover was driven by Google Cloud acceleration (Q4 2025 +48 percent vs Azure Q2 fiscal 2026 +39 percent) and Gemini's commercial success (750 million MAU). The two were roughly tied through 2024 with MSFT briefly larger; GOOGL pulled ahead decisively in late 2025.
How fast are Azure vs Google Cloud growing?+
Both growing fast but Google Cloud accelerating more recently. Azure Q2 fiscal 2026 +39 percent constant currency. Google Cloud Q4 2025 +48 percent (accelerated from 34 percent in Q3 2025). The 9 percentage point growth gap currently favors GOOGL. Google Cloud backlog of $240 billion (more than doubled YoY in Q4 2025) provides 3.4 years of forward visibility. Azure RPO contribution to MSFT's commercial RPO of $625 billion is approximately $300 to $400 billion, providing similar visibility. The two cloud providers are in active head-to-head competition for AI workloads, enterprise migrations, and government contracts.
How are their AI strategies different?+
MSFT is partnership-led: $13 billion invested in OpenAI, 49 percent economic interest, exclusive Azure cloud through 2030. ChatGPT 600 to 700 million MAU provides MSFT with consumer AI exposure through OpenAI. GOOGL is internal: Gemini developed in-house at Google DeepMind, running on Google's own TPU silicon, with 750 million MAU. GOOGL gets full control over model development, custom silicon advantages (TPU avoids NVIDIA pricing), and proprietary research depth. The two strategies have produced similar commercial outcomes through different paths. MSFT depends on OpenAI execution; GOOGL depends on internal AI research and TPU competitiveness.
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Data sourced from FRED, CoinGecko, CBOE, and other providers. This page is for informational purposes only and does not constitute financial advice. Past performance does not guarantee future results.