Google parent tops Apple as world’s most valuable company

According to analysts, the spike in Google’s share price gives the company a potential estimated value of 558 billion USA dollars, with Apple now revalued at around 534 billion.

Google generated $14.94 billion in revenues from its own Websites, up 20% on the same quarter in 2014, while the contribution from its network members’ sites grew by 7% to $4.14 billion.

Google’s shares were up nearly 6 per cent at $US795.68 in after-hours trading, after breaking through the $US800 level.

The strong revenue growth was a return on years of investment in mobile search, YouTube and so-called programmatic advertising, which involves ads being sold automatically using software, added the Ruth Porat.

Alphabet pulled back the curtain just a bit on its some of its most secretive businesses.

“It looks like Google continues to execute on mobile [advertising, ]” Neil Doshi managing director of research at Mizuho Securities said in an interview with BBC.

As a whole, Alphabet posted total revenue of $21.32 billion for the fourth quarter, although Google was the driver behind the revenue, the “Other Bets” companies just happy to spend it – losing lost $3.6bn during the period.

That number may not seem like anything of particular note by itself until you realize that at that share price Alphabet has now surpassed Apple and is now the biggest company on the face of the planet by market capitalization. Yearly operating income raked in $23.4 billion, rising 23 percent from $19.01 billion one year ago.

While Google is best known as the dominant player in Internet search, it has launched a variety of trail-blazing projects in recent years that are marginally related at best to its core operation. But with the Google side of Alphabet doing so very well, it doesn’t really matter.

Yes, the company actually called them bets.

Paid Clicks, the money Google makes from users clicking on adverts also rose by 31% in the final quarter of 2015 compared to the previous year, with the Google aspect of the Alphabet business accounting for 99.3% of revenue in the fourth quarter.

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