Google’s Alphabet set to overtake Apple as world’s most valuable company

Alphabet, Inc., the company previously known as Google, has reported another quarter of stellar results off the back of continued advertising growth from its core Google business.

The strong performance yielded a net income of $4.9bn for the company.

The earnings report was the first in which recently formed parent corporation Alphabet separated money made by Google from what it calls “Other Bets” such as its work on self-driving cars or providing internet service using high-altitude balloons.

Alphabet, the new parent company of Google, has surpassed Apple as the most valuable firm in the United States.

Alphabet’s share price soared nearly 10% in after-hours trading following the release of its fourth quarter and annual results which, if repeated when the markets reopen for trading on Tuesday, should easily take it to the top of the corporate pile.

Kevin Kelly, managing partner at Recon Capital said, it’s quite interesting that 80% of YouTube views come from outer of the USA he didn’t think it would be that extraordinary, it validates that the value of YouTube can endure to be pull out. Alphabet now has a market capital of $547.1 billion with Apple trailing behind with a market capital of $529.3.

“At Monday’s after-hours levels (which technically reflect an indication, but not the real-world value), Alphabet’s market cap would roughly be $570 billion, eclipsing Apple’s current market cap of about $535 billion”, CNBC reports. Google continues to grow strong, reporting much better-than-expected sales and profit for the fourth quarter.

Revenue from “other bets” was $327 million (£158m) in 2014, so there is growth in these sectors, but 2014’s operating loss was under $2 billion (£1.4bn). Analysts were expecting earnings of $8.09 on $20.8 billion in revenue but instead enjoyed earnings of $8.67 per share on $21.3 billion in revenue.

Stock in Alphabet, a company typically referred to as Google, has increased 43 percent in value from one year ago, putting it in the same league as Apple’s valuation.

Google CEO Sundar Pichai said, “Above all, our Q4 results show the great momentum and opportunity we have in mobile search and across Google’s range of businesses”.