After Alphabet overtook Apple on Tuesday as the most valuable publicly traded company following the online search giant’s better-than-expected results, investors are digesting all of the new information the company shared with investors. At Monday’s after-hours levels (which technically reflect an indication, but not the real-world value), Alphabet’s market cap would roughly be $570 billion, eclipsing Apple’s current market cap of about $535 billion.
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In the first regular hours of trading, Alphabet shares rose about 4 percent to push the company’s market capitalization to about $539 billion. Put together, Alphabet’s market capitalization surpassed Apple’s by more than $10 billion at the end of trading, with Alphabet at more than $540 billion compared to Apple’s drop to less than $530 billion, according to MarketWatch.
Porat said 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.
To be sure, Google does not disclose the percentage of its revenue that it generated from mobile the way Facebook does. That compared with revenue of $65.7 billion and operating income of $19 billion in the previous year.
Shares of Alphabet Inc (NASDAQ:GOOG) have soared since the company’s initial public offering (IPO).
Google, aka Alphabet, is famous for its “moonshots”-enormous, ambitious technology projects that cost a ton to develop and might not ever work or turn a profit”. Profit, before certain items, was $8.67 a share, beating the prediction for $8.08.
On Monday evening the company gave investors the clearest picture yet of how much is being spent on its long-term bets and how much is made by its core business.
It is not however the first time that Google has been considered more valuable than Apple.
But lately Apple share have slid, with a fall of more than 20% over the last three months as investors worry that iPhone sales have slowed.
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But as quickly as Google can make money, parent company Alphabet can spend it. “Other Bets” revenue, which includes Google’s long-shot projects like self-driving cars and internet balloons, posted an operating loss of $3.56 billion with only $448 million in revenue. Meanwhile, iPad sales have fallen for eight straight quarters, and Apple Watch sales remain modest. As people increasingly search for information and shop on their phones, the company expects advertisers to ramp up their spending on smartphones, too.
