Alphabet Shares Jump as Google Parent Beats Q4 Estimates

As part of the company’s latest quarterly earnings announcement, Alphabet revealed today that its “Other Bets” section generated $448 million in revenue and saw a $3.567 billion operating loss during fiscal 2015.

Of its total revenue, advertising consisted of right about $16.3 billion, with Google’s own websites accounting for about $12.4 billion.

Adjusted earnings of $8.67 per share handily beat analysts’ average estimate of $8.10 per share. On that basis, analysts expected Alphabet to earn $8.10 per share, according to Thomson Reuters.

“Google” includes internet and related businesses such as search, ads, maps, YouTube, Google Play, Chrome, Nexus, Chromecast, Chromebooks, and virtual reality.

Google, like all U.S.-based companies, experienced an enormous revenue hit from the strong Dollar, since much of the company’s business comes from outside of the States. The news sent the price of Alphabet stock up over 6 percent in after-hours trading, sending Alphabet’s market cap over $550 billion.

The move unveiled past year gives the tech giant more ability to focus on its core business, while offering startup-like flexibility to long-shot, trailblazing projects.

That means that Alphabet is now worth around $US568b, compared with Apple which has a value of $US535b.

The company’s Class-C shares, which trade under the symbol GOOG were hovering just under $800.

There are two segments reported in Alphabet’s earnings, “Google” and “Other Bets”.

A survey has shown that over 72% of investors are expecting that the “Other Bets” segment lost over $1.5 billion during 2015.

Google’s parent company has posted earnings for the last quarter, and the most interesting takeaway has nothing to do with the revenue it reported or sales but rather its new method of breaking out results for its main products and moonshot ventures.

Google’s intent to transition to “Alphabet”-a company-full-of-companies that better represents the current layout of Larry Page’s conglomerate-was announced back in August 2015″.