Alphabet is now more valuable than Apple

The company’s combined share classes were then valued at $554 billion, beating Apple Inc (AAPL), which was worth around $534 billion and whose shares were slightly falling during extended trading.

That’s it. Alphabet is now the most valuable company in the world.

It seems like a lot of money, but Alphabet is one of the few companies capable of making such bets for a long time: with just the $73 billion in cash and other securities which it has on its balance sheet, Alphabet could pay for the other “bets” losses at this level for 20 years.

According to the financial data, those bets generated $448 million revenue in 2015, but they cost Alphabet about $3.6 billion to operate. Alphabet’s market cap is now around $560 billion, while Apple, formerly the most valuable company, has a market cap of $540 billion.

Alphabet posted $4.9 billion in profit for the final quarter of 2015, a 5 percent increase from the same period a year ago.

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. There’s no chance any of these companies would get close to Google or Apple in terms of market value over the following months.

The revenue increase was attributed to strong growth in mobile search, YouTube and advertising. Ruth Porat, Alphabet’s chief financial officer, put the losses down to the variation and early stages of the projects falling under this banner.

Apple is in for a rough second quarter as the company is expected to announce its first ever decline in iPhone sales and its first year-over-year revenue drop in thirteen years.

Google CEO Sundar Pichai noted during the report that seven Google consumer products have more than 1 billion monthly active users, including Gmail, Search, Android, Maps, Chrome, Youtube, and Google Play.

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.