The shares of Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL), the parent company of Google surged after reporting better-than-expected financial results for the fourth quarter of 2015. Google advertising revenues increased by 17% to $19.08 billion.
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That means that Alphabet is now worth around $568bn, compared with Apple, which has a value of $535bn. “We’re excited about the opportunities we have across Google and Other Bets to use technology to improve the lives of billions of people”, says Ruth Porat, Alphabet Chief Financial Officer.
For those of us though, who were looking to get a peak on Google’s self-driving auto project and the internet-spreader, Project Loon – nothing is there in the earnings report individually, largely because of the sheer amount of bets Alphabet has, in its “other bets” segment.
$21.3 billion in revenue for Q4 2015, an 18% increase year-over-year.
Net income in the fourth quarter rose to $4.92 billion, or $7.06 per Class A and B share and Class C capital stock, from $4.68 billion, or $6.79 per share.
The thought that, what was formerly known as Google and now a conglomerate called Alphabet is poised to become the most valuable company kept investors spirit high.
The move unveiled past year gives the tech giant more ability to focus on its core business, while offering startup-like flexibility to long-shot, trailblazing projects.
The sum of the total operating costs was mostly from the thermostats and smoke detectors from Nest, the Internet balloons of Project Loon, the investment in medical research of Verily, robots and other undisclosed moonshot projects of Google X. In case you didn’t know or are still confused, Alphabet is Google’s parent company.
Apple had a rocky earnings call last week, with sluggish sales of the iPhone 6S disappointing analysts.
Pichai said that Google is seeing “incredible progress” with enhancing services with artificial intelligence.
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Monday’s results are the first time that Alphabet has broken its numbers into two segments – money earned in the core Google internet search and advertising business, plus everything else. Paid clicks from ads were up 31 percent, beating analyst expectations of 22.4 percent.
