If that enthusiasm holds when the market opens, Alphabet would have a value of $555 billion, blowing past the approximately $535 billion market value of Apple.
Advertisement
The earnings also made Alphabet, the most valuable company as of now, with a market capitalisation of about $570 billion in after-hours trading. Alphabet’s earnings prompted an after-hours spurt in its share price on Monday that led to Google’s parent dethroning Apple at the top of the U.S. corporate tree.
Reporting its quarterly earnings report for the first time, ever since it transitioned from Google to Alphabet, the company has announced revenues of $21.33 Billion and $8.67 earnings per share for the fourth 2015 quarter.
In the United Kingdom, revenue rose 16 percent to $1.92 billion in the fourth quarter.
Though Apple reported record profits in its own financial results last week, the California-based firm predicted iPhone sales would decline for the first time in the device’s history in the next quarter.
The Web Company was inching closer to the Apple Inc.as investors lost confidence in Apple’s smartphone business and wager that Alphabet had clearer path to growth.
Analysts on average had expected a profit of $8.10 per share and revenue of $20.77 billion, according to Thomson Reuters I/B/E/S.
The unit houses its Internet and related businesses such as search, ads, maps, YouTube and Android as well as hardware products such as its Chromebooks.
If last week Apple was punished for not sharing enough big ideas for the future, Alphabet is being rewarded for spending big on its many technology gambles. The “other bets” segment, which includes Access, Calico, Nest, Verily, Google Ventures, Google Capital and X, wasn’t profitable in the fourth quarter, though it generated a quarterly revenue of $151 million, up 29.8 percent from $106 million in the year-ago quarter.
Google promises to maintain its dominance from desktop to mobile in its advertising and search positions. The losses so far for these bets have been calculated to be around $3.5 billion for the previous year.
Advertisement
The strong revenue growth was a return on years of investment in mobile search, YouTube and so-called programmatic advertising, which involves ads being sold automatically using software, added the Ruth Porat.
