Google Parent Company Alphabet Surpasses Apple As Most Valuable In The World
Alphabet Inc., parent company to Google, Nest and X Labs, has dethroned Apple to become the most valuable company of the world. The company that debuted in August last year to take over Google’s publicly traded shares held its fourth quarter earnings call earlier today, announcing a profit of $4.9 billion, up from the $4.7 billion figure for the year-ago quarter, which saw the company’s share prices go up by roughly 8% in after-hours trading.
Google and Apple were neck and neck in the race for value between 2008 and 2010 before the iPhone-maker surpassed Exxon Mobil in 2011 to become the most valuable company in the world. In 2012, the difference in value between the two companies had shot up to $400 billion, and the Cupertino giant maintained a comprehensive lead until last year, when its stock began to dip while its rival’s stock, now being publicly traded as Alphabet’s, took a hike.
Surpassing Wall Street expectations by a mile, Alphabet raked in a Q4 revenue of $21.3 billion and $8.67 earnings per share, which puts Alphabet’s value at $558 billion versus Apple’s current worth of $535 billion.
Analysts believe the change in trend to be a product of the gambles the Google parent company has been taking while Apple’s announcements in recent history have often been labeled less than ambitious. Of course, this is more of a testament to Alphabet’s vision than an implication of impending decline for Apple. There is also the fact that while Google remains virtually unchallenged in the search business while also making headway in advertising, Apple’s competitors in the hardware space have grown in both number and quality of offerings.
What this all translates to is that investors are beginning to have greater confidence in Alphabet’s future, though there’s no telling how long this victory lasts for the company. Both it and its rival in value have a big year ahead of them, with the upcoming Q4 expected to see the release of the oft-rumored iPhone 7. From the regular consumer’s point of view, this is nothing but a win. The closer the competition, the more ambitious either side is bound to get, and with that, comes the possibility of products that push the envelope.