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Google parent Alphabet reports Q4 earnings, passes Apple to become the world's most valuable firm

Posted: , by Alan F.

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Google parent Alphabet reports Q4 earnings, passes Apple to become the world's most valuable firm
Quick. Name the most valuable company in the world. Apple, you say? Nope. As of today, Google parent Alphabet has a market capitalization (stock price multiplied by shares outstanding) of $558 billion. That tops the $535 billion market cap belonging to the iPhone manufacturer. We gave you advance notice that this might happen late last month when Alphabet's enterprise value (which adds debt and subtracts cash from the market cap) surpassed Apple's.

What prompted a huge 5% rally in Alphabet during after-hours trading on Monday was the release of the company's fourth quarter earnings. The $21.3 billion in revenue logged by the company during the quarter topped Wall Street's estimate of $20.8 billion. Earnings of $8.67 a share easily topped the Street's expectations of $8.09.

For the year, Google took in $74.5 billion of revenue, producing operating earnings of $23.4 billion. That includes advertising and Android. Other businesses put together in a group called "other bets," include Google X, Google Fiber, self-driving cars and more. They all brought in just $448 million in revenue, and lost $3.5 billion. Most of the revenue from the other bets came from Nest, Google Fiber and Verily. The latter used to be known as Google Life Sciences. Telecom network Fiber, and smart home hardware manufacturer Nest are not some pie in the sky businesses, and both could end up contributing to the bottom line in the not too distant future.

"Our very strong revenue growth in Q4 reflects the vibrancy of our business, driven by mobile search as well as YouTube and programmatic advertising, all areas in which we've been investing for many years. We're excited about the opportunities we have across Google and Other Bets to use technology to improve the lives of billions of people."-Ruth Porat, CFO, Alphabet

The "other revenue" category is where Alphabet stashes Google's revenue and profits from the Google Play Store. That group posted revenue of $2.1 billion during the fourth quarter, a gain of 24% year-over-year.

Paid clicks on Google websites rose 40% year-over-year during the fourth quarter. On a sequential basis, paid clicks rose 22% from the third quarter of 2015 to the fourth quarter of the year.

source: Alphabet

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posted on 01 Feb 2016, 20:41 4

1. tedkord (Posts: 10215; Member since: 17 Jun 2009)


Interesting, but ultimately irrelevant.

posted on 02 Feb 2016, 08:03 3

39. SuperAndroidEvo (Posts: 4806; Member since: 15 Apr 2011)


It's good to see someone other than Apple on top. This is ultimately good for business & the mobile segment. Competition brews new and interesting technology.

I disagree, this is not irrelevant.

posted on 03 Feb 2016, 02:28 1

47. Jango (Posts: 294; Member since: 24 Oct 2014)


Exactly. Where is that idiot who keeps saying "nobody makes money with Android". LOL, looks like he high-tailed it.

posted on 03 Feb 2016, 12:05 1

54. downphoenix (Posts: 3155; Member since: 19 Jun 2010)


well Alphabet/Google does, clearly.

posted on 03 Feb 2016, 20:44

57. nepalisherpa (Posts: 209; Member since: 17 Jul 2015)


Alphabet is not just Android. You know that, right? By the way, Apple is back again to the top of the list.

posted on 01 Feb 2016, 20:44 2

2. darkkjedii (Posts: 19707; Member since: 05 Feb 2011)


Fanboy bragging rights, nothing more.

posted on 01 Feb 2016, 21:05 41

4. apple4never (Posts: 1064; Member since: 08 May 2013)


but when apple was #1 it was because they were the best, now that google is at the top its just fanboy bragging rights? huh...ok

posted on 02 Feb 2016, 03:48 4

35. Finalflash (Posts: 2764; Member since: 23 Jul 2013)


It's just "moving goal posts" again. A lot it iFans use these things to justify purchasing Apple products because there is usually no logical reasons for their purchase decisions other than brand. There are good reasons to by some Apple products but those people who have good reasons don't quote market numbers as justification when Apple is actually ahead.

posted on 02 Feb 2016, 05:06 1

37. darkkjedii (Posts: 19707; Member since: 05 Feb 2011)


This iFan as you put it, purchases what he wants. That's why I own the top phones, tablet, and smart watches from both platforms. I don't give a damn about market cap, nor do I think inside that box.

I neither own, work for, or have stock in either company. I'm a consumer of their products, nothing more.

posted on 02 Feb 2016, 09:05

40. marorun (Posts: 3108; Member since: 30 Mar 2015)


Nice so you must have very big pocket and bag to bring all of this with you all the time.

I used all the top , mid , low end product of both platform and i would say i was not impressed by 2015 high end product they all suck and have issues.

2015 was mid end year mid range device like iphone , motorola and such where interesting sadly some OEM price mid range device like high end but thats another story.

posted on 02 Feb 2016, 11:41

44. darkkjedii (Posts: 19707; Member since: 05 Feb 2011)


Why on earth would I bring it all with me all the time?

posted on 02 Feb 2016, 05:03

36. darkkjedii (Posts: 19707; Member since: 05 Feb 2011)


Post the link of me saying that. Huh...ok my ass, and post the link.

posted on 01 Feb 2016, 21:18 14

9. TechieXP1969 (Posts: 8308; Member since: 25 Sep 2013)


Wouldn't have expected anything less from a hypocrite.
Apple is on top, oh let's praise to the highest of heaven and pat them on the back. But it's only bragging rights for fams? Coming from a brag-vangelist like you.

Why am I not surprised?!

That is why it's better to be platform or brand agnostic. You can feel equally the same about such news.

It's simple. Investment to dollars don't matter, if the company doesn't benefit it's customers with it like Apple for example.

posted on 01 Feb 2016, 22:05 3

19. Rafishant (Posts: 205; Member since: 13 Oct 2015)


This will not last for a long time. The market is extremely underestimating Apple. Apple profit for the last quarter is almost equal to what Google did in a year. Apple revenue in the last quarter is higher than Google revenue in the whole year. I guess with the launch of iPhone 7, Apple will smash another record and return to its regular position, if not higher.
Apple is still the most profitable company in the history and it is now very difficult for any company to take this over.

posted on 01 Feb 2016, 23:04 6

23. tedkord (Posts: 10215; Member since: 17 Jun 2009)


The problem is Apple is stagnant. Alphabet is the bigger risk taker, the more innovative company, and Wall Street recognizes this. The business community has recognized it for some time.

posted on 02 Feb 2016, 05:09 1

38. darkkjedii (Posts: 19707; Member since: 05 Feb 2011)


Exactly, Apple needs to simply go further and take more risks. Their conservative approach over there in Cupertino is making buyers conservative with their wallets. Outside of more than likely buying an iPhone 7, I won't upgrade my watch, or tablet for another 2 years. If I do before then, it'll be Craigslist. Good point...

posted on 01 Feb 2016, 23:39 8

26. willard12 (Posts: 1524; Member since: 04 Jul 2012)


Apple sold a record number last quarter only because of opening in China on day 1. Unless the iphone 7 brings something new that everyone has to have, or Apple starts selling to Martians, it will be hard to increase sales. Apple has a loyal fanbase. But, no one is immune to market saturation.

posted on 02 Feb 2016, 09:07

41. marorun (Posts: 3108; Member since: 30 Mar 2015)


I would say Apple share are overestimated just as the company product are overestimated.

Its called marketing and making you look much better than what you are.

posted on 01 Feb 2016, 22:04 5

18. joey_sfb (Posts: 5314; Member since: 29 Mar 2012)


Good to know that Google is doing well. Now can they please focus and bring us Project Ara in 2016.

No more excuses!

posted on 02 Feb 2016, 00:31

27. Scott93274 (Posts: 4018; Member since: 06 Aug 2013)


Damn, no joke, if I recall correctly, they were aiming for an early 2015 release weren't they?

posted on 02 Feb 2016, 02:03

31. joey_sfb (Posts: 5314; Member since: 29 Mar 2012)


Google did commit resources to Project Ara. Things are looking bright.

https://www.youtube.com/watch?v=B7PWN-nLO68

posted on 03 Feb 2016, 02:38

48. Jango (Posts: 294; Member since: 24 Oct 2014)


1. Can you show a similar comment of yours, DJ when Apple was cited as being the most profitable, in the near past? If not, it explains why others may accuse you of hypocrisy.

2. A4N's post may not be specifically directed at your person but directed rather at the general sentiment of many Apple cultists that waltz about in the comments section, proud of having collectively given their money away to make SOMEONE ELSE filthy rich.

posted on 03 Feb 2016, 12:13

55. downphoenix (Posts: 3155; Member since: 19 Jun 2010)


Well 1) The burden of proof should be laid on the accusor(s) not the accussee(s). If you want to call him out on Hypocrisy, back it up with facts. 2) Again, burden of proof. Any evidence to back your claim?

posted on 08 Feb 2016, 08:13

59. Jango (Posts: 294; Member since: 24 Oct 2014)


Troll harder.

I made no claims that DJ was a hypocrite. LOL. So much for your lesson on burden of proof.

posted on 01 Feb 2016, 21:04 14

3. TechieXP1969 (Posts: 8308; Member since: 25 Sep 2013)


Grabs popcorn....this is gonna be a showdown now.
Watch all the Ifans come with their look of surprise.

posted on 01 Feb 2016, 21:46 2

12. jroc74 (Posts: 5986; Member since: 30 Dec 2010)


Forget iFans, I'm purely in Android land and I am shocked and surprised. I honestly think those that like, admire Google would be surprised too.

Congrats Google.

posted on 01 Feb 2016, 21:51

14. jroc74 (Posts: 5986; Member since: 30 Dec 2010)


But you already proved a point: its not a look of surprise from them but one of ....meh...from some folks.

I expect this article to have very few comments.....

posted on 01 Feb 2016, 22:07 10

20. Rafishant (Posts: 205; Member since: 13 Oct 2015)


You and Google broke a great record today.
This might be your shortest comment in this site ever!.
LOL

posted on 01 Feb 2016, 21:08 2

5. UglyFrank (Posts: 1580; Member since: 23 Jan 2014)


Apple makes more money so it's somewhat irrelevant.

posted on 01 Feb 2016, 21:33 8

10. lyndon420 (Posts: 3828; Member since: 11 Jul 2012)


Not necessarily. We're talking valuable here which includes longevity, future business opportunities, contributions to the betterment of mankind, etc etc...

posted on 01 Feb 2016, 21:54 3

15. jroc74 (Posts: 5986; Member since: 30 Dec 2010)


So we have gone from Apple and their fans gloating over market share....until Android took that.

Then its profits, how much the company makes....and right now Google is deemed more valuable so part of this is about to become irrelevant to some because Apple makes more money....

Interesting...

I hope I see the day Google makes more money than Apple....where are some of yall going to move the goalposts to then.....

posted on 02 Feb 2016, 02:22 4

32. k4ever (Posts: 154; Member since: 08 Oct 2014)


We should all be used to Apple hypocrites moving the goal post by now. The company that they worship has been on a losing streak lately and has had to do a lot of things that has made Apple hypocrites go back on their word.

Like you mentioned, Apple hypocrites gloated over market share, until Android left iOS in the dust. Now, market share doesn't matter. Then Apple hypocrites gloated over screen quality, until Android devices (Samsung, Sony, LG) left iOS devices in the dust. Now, the iPhone/iPad's screen quality is "adequate for their needs." Then Apple hypocrites gloated over benchmarks, until the iOS devices fell behind. "Benchmarks don't matter..user experience does", until the A9 processor was released. Apple hypocrites gloated over camera quality. Now that the iPhone has been left in the dust once again by Android devices, pictures taken by the iPhone are "adequate for their needs."

Then there are the things that these hypocrites made phone of or said that Apple didn't need to do. The first was third party keyboards. These were supposed to be "a major security risk." Of course until iOS got third party keyboards, now they are alright. Large screened phones (phablets) were a joke when the Galaxy Note series was released. Now that the iPhone 6 Plus is out, all of sudden large screen phones are alright. Apple didn't need to sell phones in China, until they did and made a ton of money from it.

Every step of the way, Apple hypocrites have moved the goal post. This is because they don't want to admit that the real reason they buy Apple products is because of the logo on the back.

posted on 02 Feb 2016, 09:12

42. marorun (Posts: 3108; Member since: 30 Mar 2015)


Wow this is probably the best post explaining how ifan act :)
I never saw it like this but now thats you say it its so true lol.

So if next iphone come with bigger battery they will say its great but now they say small battery with optimization is fine.

OMG so funny :)

posted on 02 Feb 2016, 11:56

45. jroc74 (Posts: 5986; Member since: 30 Dec 2010)


+10000000

posted on 03 Feb 2016, 02:45

49. Jango (Posts: 294; Member since: 24 Oct 2014)


Yes it was all those lame excuses. Number of apps in the Play store. Now the Play store is bigger.

Dropped frames everywhere? Now 60fps almost everywhere after butter.

Apple more secure they said, until the celeb icloud hacks became public and malware removed from Apple Store.

posted on 01 Feb 2016, 21:08 3

6. shiftt (Posts: 333; Member since: 03 May 2015)


Hi qz+!

Lets see how this goes..
*sips tea*

posted on 01 Feb 2016, 21:10 6

7. Captain_Doug (Posts: 990; Member since: 10 Feb 2012)


Really was a smart idea to create Alphabet. Adds a lot more structure to Google especially with all of its diversity. Gives it room to grow.

posted on 01 Feb 2016, 21:14 1

8. TechieXP1969 (Posts: 8308; Member since: 25 Sep 2013)


AL before AP Apple stockholders are like, we know another "A" word. It's time to "abandon" ship. Haha.

Had to crack "A" joke.

Apple has made the letter "I" synonymous with their brand. Now it's time for the first letter in the "Alphabet" to regain it's throne along with another word that comes before AP...Android.

I guess all those Ads paid off. Haha.

I hope they take their new found investment and work to make Android be less of a VM, and more of a direct hardware accessing OS. I want to see what benches would be like then.

Google, ease find a way to run iOS Apps on Android. So that develops who refuse to bring their apps over, no longer will be an excuse of why Android doesn't have some of those apps.

Value means nothing, if you don't take the investments and actually give your customers something.

posted on 03 Feb 2016, 03:04

50. Jango (Posts: 294; Member since: 24 Oct 2014)


You are my hero, sir. Not just the humor but more so your point about Android being a VM. This is really Android's major achilles heel and let down.

Despite this, it is shocking how well Android DOES perform despite this handicap. GOOGLE! Fix this asap!

posted on 01 Feb 2016, 21:38

11. EnigmaticPsychotic (Posts: 61; Member since: 26 Nov 2013)


Wasn't Apple worth over 750bil at one point?

posted on 01 Feb 2016, 21:49 7

13. jroc74 (Posts: 5986; Member since: 30 Dec 2010)


All this and no really high priced products like Apple. They basically give away their services, apps....

Goes to show you dont have to charge a kings ransom for your products to live like a king.

posted on 01 Feb 2016, 21:59 1

16. eden555 (Posts: 26; Member since: 21 Jan 2016)


foreal

posted on 01 Feb 2016, 22:36 2

22. TerryTerius (Posts: 1528; Member since: 10 Apr 2014)


That's kind of ignoring the fact that the two of them make money in completely different ways. Apple and Google are two very different companies.

posted on 02 Feb 2016, 01:51 1

30. jroc74 (Posts: 5986; Member since: 30 Dec 2010)


I agree.

What you said could be inferred from my post tho... Thats why I said they basically give away their services, apps. I just didnt mention them making money from ads.

posted on 03 Feb 2016, 03:04

51. Jango (Posts: 294; Member since: 24 Oct 2014)


Which is pretty much what JROC was saying.

posted on 01 Feb 2016, 22:01

17. oozz009 (Posts: 517; Member since: 22 Jun 2015)


That just value of a company, if the investors fail to see the true value of Apple and their losing faith like they have been for the last two years (or more) then it was just a matter of time before that happened. In the end, Apple is still extremely rich and I'm sure they will do something about this, hmm perhaps refuse another deal with Google as a default engine on safari's iOS? I wonder how optimistic investor would be about Google if that were to happen? :) Just saying, the tides can always change in little time.

posted on 01 Feb 2016, 23:08 1

24. TerryTerius (Posts: 1528; Member since: 10 Apr 2014)


It always concerns me when anyone is rooting for multibillion-dollar multinational corporation's with enormous amount of power as if it's a team sport.

posted on 01 Feb 2016, 23:19 2

25. VZWuser76 (Posts: 3763; Member since: 04 Mar 2010)


http://rlv.zcache.com/rah_rah_sis_boom_bah_8_5_x_11_flyer-r44542c60dcbd4b258f95e8a120c9f0b5_vgvyf_8byvr_512.jpg

posted on 02 Feb 2016, 02:37 1

34. RebelwithoutaClue (Posts: 2693; Member since: 05 Apr 2013)


Especially since those corporations don't give a damn about consumers or humankind in general.

posted on 03 Feb 2016, 03:07

52. Jango (Posts: 294; Member since: 24 Oct 2014)


I wish these concerns were more prominent year in year out when Apple fanbois paraded in the comments section blowing their trumpet after every quarterly earning.

Suddenly Google is doing better than Apple and SUDDENLY the ethical arguments emerge.

posted on 02 Feb 2016, 01:11

28. Furbal (Posts: 918; Member since: 22 Sep 2012)


That would have immediate backlash from users.

posted on 01 Feb 2016, 22:14 4

21. prabhas2015 (Posts: 11; Member since: 18 Feb 2015)


Congrats Alphabet!!!

posted on 02 Feb 2016, 01:13 1

29. ZeeNasir (Posts: 99; Member since: 25 Nov 2012)


Apple = Nokia= Falls. If no innovation

posted on 02 Feb 2016, 02:31 1

33. ramkumar1337 (Posts: 7; Member since: 08 Oct 2015)


As much as i like google, the truth of the pudding is valuation is just a temporary phase.
The only thing that matter is how much money is brought on the table Qtr to Qtr. The Margin is the most important thing and nothing at the moment is beating APPLE.
Wish GOOGLE would beat it though, but with Isheeps all around looks tough.
The next avenue Apple is bringing more sales is going to be through Refurbhised Apple products in developing markets

posted on 02 Feb 2016, 09:16

43. marorun (Posts: 3108; Member since: 30 Mar 2015)


In fact its a matter of how much increase in your earning you do QTR to QTR and Alphabet been increasing its profit year after year faster than Apple is.
In fact this year Apple may be stagnant on the sales side as its look like and if they dont bring something solid with iphone 7 its may become even worst.

Ofcourse they wont die but its be funny to see how they work thats issue.

Since Job death Apple is quite boring to be truthfull and the device they make as well.

posted on 02 Feb 2016, 14:42

46. kryme (Posts: 326; Member since: 24 Oct 2013)


Question does it mean it's the most valuable "tech" company in the world or it's the most valuable company in the world period... Always thought it was in the "tech" world never knew phone business could make u the most valuable company in the whole entire world... What about these oil companies what they heck they doing...

posted on 03 Feb 2016, 03:14

53. Jango (Posts: 294; Member since: 24 Oct 2014)


Apple has been more valuable than even oil, arms, tobacco, steel and pharma companies, for which countries are currently going to wars over. When there's money like this to be made and power like this to be wielded, you can bet your bottom dollar, multi nat corps like Google and Apple have their hands dirty... somehow. LOL!

posted on 03 Feb 2016, 14:05

56. oozz009 (Posts: 517; Member since: 22 Jun 2015)


And only one day later: "Google held the crown for a day, Apple just took it back!" PA how come you did not make a new article to mention this:D At the moment of writing this, Apple is valued at 535 billion and Google at 506 billion. It seems the race is still on though :)

posted on 06 Feb 2016, 12:27

58. aleant36 (Posts: 65; Member since: 03 Feb 2015)


The Alpha dog

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