The internet giant beat analyst expectations by reporting revenue of 21.3 billion United States dollars (£14.7bn) for the final quarter of last year, up from 18.1 billion U.S. dollars (£12.5bn) on the same period last year. It was a bumper year in terms of revenue, with the results bumping Alphabet’s market cap to an impressive US$570 billion, making the company the most valuable company in the world. Google’s aggregate paid clicks rose by 31% as compared to same quarter a year ago, whereas paid clicks on its website saw an increase of 40%.
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With the release of its fourth-quarter earnings report today, Google parent company Alphabet became the world’s most valuable company, and kicked Apple out of that coveted spot.
Adjusted earnings for the quarter rose to $6.04 billion or $8.67 per share from $4.65 billion or $6.76 per share past year.
Google, meanwhile, produced an operating profit of $6.8 billion on revenue of $21.2 billion. Analysts had expected $20.77 billion, according to Thomson Reuters I/B/E/S.
“Other Bets” includes businesses such as Google Access, Fiber, Verily, Nets, Google Capital, Google X, Calico, and Google Ventures.
It was created to make the core Google internet services business “cleaner and more accountable” and give the company more management scale, allowing it to run things independently that aren’t very related to its main subsidiary.
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. The stock went up 8.24 percent in after-hours trading.
The restructuring of Google was done in an effort to provide further transparency and segment businesses of significantly different nature. In the weeks leading up to earnings season, however, many speculated that Alphabet could take the mantle with strong earnings. This is compared to $327 million in revenue and $1.942 billion for fiscal 2014, meaning Other Bets grew 27.0 percent in revenue and a huge 83.7 percent in operating loss.
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The title of most value company in the USA has been passed between technology companies for several decades.
