The news sent share prices up by 8% in after-hours trading, enough to take the company past Apple’s 534 billion U.S. dollar (£370 billion) market valuation, but only when trading begins again on Tuesday will Google have confirmation of its position.
Alphabet overtook Apple when a surge in after-hours trading saw it’s market capitalisation hit US$570 billion, eclipsing Apple’s current market cap of about $535 billion.
Alphabet had a huge opportunity to finally pass Apple as the most valuable company in the world.
Now, following sizzling fourth-quarter results, Alphabet is poised to surpass Apple in terms of market value, as well.
Overall, Alphabet’s operating income came in at $5.38 billion in Q4, up 22%, while its net income was $4.92 billion, an increase of 5%. All important paid-for clicks – where advertisers pay per person who clicks on the ad – were up 31 percent across the entire internet, and 40 percent on Google-owned sites.
“The primary driver (of growth) was mobility”, said Alphabet Chief Financial Officer Ruth Porat, on a conference call to discuss the results.
“For the first time they (Alphabet) have a real catalyst to the stock, aside from a standard beat-and-raise”, said James Cakmak, an analyst at Monness, Crespi, Hardt & Co Inc.
Alphabet Inc today, 1 February 2016, announced financial results for the quarter and fiscal year ended December 31, 2015.
Other Bets includes more experimental ventures such as self-driving cars and internet balloon programmes.
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 better performance of Google’s core businesses also underpinned Alphabet’s rise to the top.
Excluding one-time items, Google earned $8.67 per share.
These ranking could obviously change, considering that stock prices continue to change after company’s earnings report.
Meanwhile, Alphabet’s other companies together produced an operating loss of $1.2 billion on revenue of just $151 million.
Alphabet subsidiaries include Google,