Google profit soars, easily coverings losses on ‘other bets’

Apple became the most valuable US company a year ago, but its stock prices have suffered since the company announced in its earnings report last week that sales of the iPhone are flat after years of booming demand.

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.

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 market absolutely adored Alphabet’s financials and drove the stock up $39.00/ share or 5.91 percent in after-hours trading to $791.00 per share.

$4.9 billion net income in Q4 2015.

Google may lead in search, but it trails in display ad revenue to Facebook, per eMarketer, generating $10.21 billion in display ad revenue worldwide this year.

Adjusted earnings of $8.67 per share excluded certain one-time items.

The company would exceed Apple’s market cap roughly around $40 billion, according to CNBC.

Alphabet Inc reported better-than-expected quarterly profit on Monday, sending shares of Google’s parent soaring in after-hours trading and making it the most valuable US company ahead of rival Apple Inc. Google websites generated $14.9 billion, Google Network Members’ websites $4.1 billion, Google advertising revenues $19.1 billion and Google other revenues $2.1 billion.

Alphabet went into detail, saying that the non-Google parts (not including Nest and Google Fiber) of the conglomerate pulled in $448 million in revenue, but overall those parts of the company lost $3.567 billion.

The latest leapfrog comes following a massive surge in Google’s value in July when shares jumped up significantly.

This earnings release also marked the first in which Alphabet has separated the results of its Google business – which includes YouTube – from its “Other Bets”, which in turn include more exotic and risky forays such as self-driving cars.