Alphabet, the holding company formed by Google previous year, on Monday delivered an alphabet soup of fourth-quarter results that included an operating loss of $3.6 billion for its so-called Other Bets, or businesses outside of the company’s traditional Internet-based offerings.
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Last week, fourth quarter and full-year 2015 earnings reports from various companies were revealed and this week is no different.
Overall net income for Alphabet was $4.9 billion United States dollars, up $300 million USD from the same period a year ago.
Adjusted earnings of US$8.67 per share handily beat analysts’ average estimate of US$8.10 per share. Revenue from Google’s core businesses gained 18% to $21.18 billion.
Apple’s has lost more than $200 billion in value in six months as investors have grown increasingly anxious that the company’s growth has stalled. As of today, Google parent Alphabet has a market capitalization (stock price multiplied by shares outstanding) of $558 billion.
Mobile search, YouTube and programmatic advertising drove revenue for Google, according to Ruth Porat, CFO of Alphabet. As Google continues to pour earnings from its search business into its experimental endeavors, Porat wanted to give investors an understanding of how search sales are translating into search profit. Other Bets includes Access/Google Fiber, Calico, Nest, Verily (formerly Google Life Sciences), GV (formerly Google Ventures), Google Capital, X (formerly Google [X]), and so on.
Alphabet’s stock traded hands at $794.95 at 4:34 p.m. EST, up 5.71 percent from the market closing price of $752.
Alphabet, the recently-created parent company of Google and other ex-Google subsidiaries, has just surpassed the market cap of Apple in after hours trading, making it the most valuable company in the world.
Paid click volumes were up 31 percent compared to the same quarter in 2014, with 40 percent growth on Google-owned sites versus the Google Adsense network where other sites host ads provided by Google; YouTube’s TrueView ad format was credited with boosting clicks, particularly with mobile users.
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In the search business, cost-per-click during Q4 was down 13% year-over-year.
