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

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.


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

FEATURED VIDEO

58 Comments

1. tedkord

Posts: 17311; Member since: Jun 17, 2009

Interesting, but ultimately irrelevant.

39. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 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.

47. Jango

Posts: 372; Member since: Oct 24, 2014

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

54. downphoenix

Posts: 3165; Member since: Jun 19, 2010

well Alphabet/Google does, clearly.

57. nepalisherpa

Posts: 338; Member since: Jul 17, 2015

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

2. darkkjedii

Posts: 30966; Member since: Feb 05, 2011

Fanboy bragging rights, nothing more.

4. apple4never

Posts: 1064; Member since: May 08, 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

35. Finalflash

Posts: 4063; Member since: Jul 23, 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.

37. darkkjedii

Posts: 30966; Member since: Feb 05, 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.

40. marorun

Posts: 5029; Member since: Mar 30, 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.

44. darkkjedii

Posts: 30966; Member since: Feb 05, 2011

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

36. darkkjedii

Posts: 30966; Member since: Feb 05, 2011

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

9. TechieXP1969

Posts: 14967; Member since: Sep 25, 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.

19. Rafishant

Posts: 395; Member since: Oct 13, 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.

23. tedkord

Posts: 17311; Member since: Jun 17, 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.

38. darkkjedii

Posts: 30966; Member since: Feb 05, 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...

26. willard12 unregistered

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.

41. marorun

Posts: 5029; Member since: Mar 30, 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.

18. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Good to know that Google is doing well. Now can they please focus and bring us Project Ara in 2016. No more excuses!

27. Scott93274

Posts: 6032; Member since: Aug 06, 2013

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

31. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Google did commit resources to Project Ara. Things are looking bright. https://www.youtube.com/watch?v=B7PWN-nLO68

48. Jango

Posts: 372; Member since: Oct 24, 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.

55. downphoenix

Posts: 3165; Member since: Jun 19, 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?

59. Jango

Posts: 372; Member since: Oct 24, 2014

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

3. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

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

12. jroc74

Posts: 6023; Member since: Dec 30, 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.

14. jroc74

Posts: 6023; Member since: Dec 30, 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.....

20. Rafishant

Posts: 395; Member since: Oct 13, 2015

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

5. UglyFrank

Posts: 2193; Member since: Jan 23, 2014

Apple makes more money so it's somewhat irrelevant.

15. jroc74

Posts: 6023; Member since: Dec 30, 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.....

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.