Alphabet is world’s most valuable company

For those of us though, who were looking to get a peak on Google’s self-driving auto project and the internet-spreader, Project Loon – nothing is there in the earnings report individually, largely because of the sheer amount of bets Alphabet has, in its “other bets” segment.

Alphabet, formed as part of a Google restructure a year ago, is worth $570 billion (£399 billion) according to Wall Street, eclipsing Apple’s market capitalisation of $539 billion (£377 billion). Alphabet Inc. and Apple have danced closer in the past few weeks, but it was stellar Q4 earnings from Mountain View that pushed it into lead on Monday, Feb. 1. The plans were materialized in October 2015 when Google was reorganized as Alphabet with Larry Page as CEO and Sergey Brin as President. Without the restructuring, it would have reported earnings of $6 billion – and that includes the $1.1 billion quarterly loss from Alphabet’s “other bets”.

The big gain for the company was advertising.

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%.

A newcomer is now the most valuable company in the world.

The two tech companies have been neck and neck for months, but after Alphabet posted record profits in the fourth quarter, shares of the company spiked in after-hours trading.

The fourth-quarter report marks the first time Alphabet has spelled out the costs of running still-experimental businesses that are trying to do everything from eliminating human drivers to curing cancer.

The change in sentiment coincided with Google’s hiring of a new chief financial officer, Ruth Porat, last May.

Apple of late has struggled with slowing demand for its iPhone and without a new blockbuster product for long.

Alphabet’s results show Google is still absolutely core to its success, with an operating profit margin of 31 percent.

Google has refined the online search ad business to become hugely profitable, but analysts say the company needs to diversify as technology moves away from the personal computer to mobile apps, wearables and other “Internet of Things” connected devices.