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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

59 Comments
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posted on 01 Feb 2016, 20:41 4

1. tedkord (Posts: 12857; Member since: 17 Jun 2009)


Interesting, but ultimately irrelevant.

posted on 02 Feb 2016, 08:03 3

39. SuperAndroidEvo (Posts: 4888; 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: 330; 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: 3165; Member since: 19 Jun 2010)


well Alphabet/Google does, clearly.

posted on 03 Feb 2016, 20:44

57. nepalisherpa (Posts: 219; 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: 22693; 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 01 Feb 2016, 21:18 14

9. TechieXP1969 (Posts: 11679; 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, 22:04 5

18. joey_sfb (Posts: 6252; 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 01 Feb 2016, 22:05 3

19. Rafishant (Posts: 316; 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: 12857; 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 01 Feb 2016, 23:39 8

26. willard12 (Posts: 1820; 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, 00:31

27. Scott93274 (Posts: 5161; 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: 6252; 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 02 Feb 2016, 03:48 4

35. Finalflash (Posts: 3337; 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, 05:03

36. darkkjedii (Posts: 22693; Member since: 05 Feb 2011)


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

posted on 02 Feb 2016, 05:06 1

37. darkkjedii (Posts: 22693; 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, 05:09 1

38. darkkjedii (Posts: 22693; 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 02 Feb 2016, 09:05

40. marorun (Posts: 4277; 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, 09:07

41. marorun (Posts: 4277; 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 02 Feb 2016, 11:41

44. darkkjedii (Posts: 22693; Member since: 05 Feb 2011)


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

posted on 03 Feb 2016, 02:38

48. Jango (Posts: 330; 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: 3165; 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: 330; 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: 11679; 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: 6019; 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: 6019; 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: 316; 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: 1784; 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: 4727; 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...

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