Google has surpassed Microsoft, becoming the world's second largest technology company.
Google's market valuation rose 1 percent to $761.78 at the close of the stock market in New York on Monday, showing a market capitalization of approximately $249.9 billion, according to Bloomberg. Microsoft, however, fell less than 1 percent to $29.49 for a valuation of $247.2 billion.
Some financial analysts think the news is related to a shift from the Microsoft dominated PC industry, where users relied on software running on traditional desktop machines, to software delivered by the Internet that allows users to access information via internet dependant mobile devices, such as tablets and smartphones.
While Microsoft operates online, with its Bing search engine for instance, it still relies on its PC-based Windows operating system (OS) and Office software. Additionally, Windows PC sales have taken a nosedive as consumers opt for cheaper tablets instead of laptops running Microsoft's software.
Apple remains the world's most valuable company at $618.1 billion.
Apple passed Microsoft in 2010 due to mounting sales of its iPhones and iPads, helping the consumer information technology industry become less dependent on desktop and laptop PCs.
Microsoft is betting on its next version of its mobile and touchscreen friendly OS, Windows 8, which will be released October 26, to propel it further into the online and mobile computing markets.
However, with the popularity of Google's Nexus 7 tablet growing by the day as we edge closer towards the holiday season, the gap in these firms' popularity might widen further still.