On Monday, Alphabet announced its financial results and surpassed Apple as the world's most valuable company.
Alphabet's first fourth quarter results beat investor's estimates, reporting a net income of $8.67 per share on revenue of $21.33 billion, up 18 percent from Google's results a year ago. Wall Street had estimated that Alphabet would report $8.10 on revenue of $20.8 billion, and these predictions were considered high at the time. "Our very strong revenue growth in Q4 reflects the vibrancy of our business, driven by mobile search, as well as YouTube and programmatic advertising, all areas in which we've been investing for many years," said Ruth Porat, CFO of Alphabet in a statement on the results. "We're excited about the opportunities we have across Google and Other Bets to use technology to improve the lives of billions of people." Google was responsible for $74.5 billion in revenue and a total income of $23 billion while Other Bets reported nearly a $3.6 billion loss for 2015.
The better-than-expected quarter sent Alphabet's stock up nearly 10 percent in after-hours trading, despite the loss on Other Bets. Thanks to this boost and Apple's mediocre earnings report, Google's parent company Alphabet claimed the title of the world's most valuable company. Alphabet's market cap is now around $560 billion, while Apple, formerly the most valuable company, has a market cap of $540 billion. Alphabet's top spot may be temporary, according to Jan Dawson, chief analyst at Jackdaw Research. Dawson explained, "The reality is that Apple is going through a period in its history where revenues are temporarily dipping, not going through some sort of terminal decline. So I'd expect this situation to continue to evolve, and it may well be that Apple ends up passing Google again later this year or sometime next year."
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