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Microsoft Overtakes General Electric as World's Most Valuable Business

Strategic Insights

— 1 min read

Microsoft has emerged as the world's most valuable business, surpassing General Electric in the Financial Times' annual FT500 ranking of global companies. This rise comes despite the company facing an anti-trust case in the US and reflects the growing enthusiasm for technology stocks on Wall Street over the past 12 months. Meanwhile, in the UK500 ranking, Glaxo Wellcome has taken the top position from British Petroleum, but BP's merger with Amoco has since restored the oil group to the top spot. The FT500 ranking is based on market capitalization, with this year's snapshot taken at the end of September.

Key Takeaways:

  • Microsoft has replaced General Electric as the world's most valuable business in the FT500 ranking.
  • The company's success comes despite facing an anti-trust case in the US and reflects Wall Street's enthusiasm for technology stocks.
  • The FT500 ranking sees significant changes, with new entrants making up over one-fifth of the constituents.
  • The US has 244 companies in the Global 500, up from 222 last year, while Japan's tally has slumped from 71 to 46.
  • European companies, such as Royal Dutch/Shell, continue to maintain strong positions, while some European technology stocks, like SAP and Vodafone, have experienced sharp rises.
  • European banking stocks have generally declined due to Russia's default on domestic debt obligations.
  • Vodafone's proposed merger with AirTouch would further propel the company up the rankings.

Statistics:

  • The FT500 ranking has 500 constituent companies.
  • Microsoft has surpassed General Electric as the world's most valuable business.
  • The US has 244 companies in the Global 500, up from 222 last year.
  • Japan's tally has slumped from 71 to 46 in the Global 500.
  • SAP's market ranking has been reduced from 244 to 128.
  • Vodafone's market ranking has risen from 226 to 81.
  • Russia's default on domestic debt obligations has negatively impacted European banking stocks.

Sources:

  • Financial Times' FT500 ranking
  • Financial Times' Global 500 ranking
  • Bloomberg News
  • Reuters News Agency

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