Google‘s parent company, the Alphabet has surpassed Apple as the world’s most valuable company with high market capitalization. According to market reports Alphabet, after a long time, reached the market capitalization higher than the Apple. Against Apple’s market capitalization of $538.7 billion, Alphabet closed the market for the day with $517.6 billion which was turned out at $540 billion with after-hour valuation. It was the first time for Google to suppress Apple in market capitalization since 2010.
There are however reasons for Google to celebrate the competing performance in the stock market. The high market capitalization has placed Alphabet as the most valuable company in the world with Apple now on second spot. Prior to it, Apple has been the most valuable company in the world since 2011 when it overtook the oil giant Exxon Mobil.
According recent earning reports, Alphabet has claimed an appreciating performance in the fourth quarter of 2015 as compared to same period previous year. As the report states, Alphabet’s revenue for Q4, 2015 was at $21.3 billion which is about 18% higher than its revenue in Q4, 2014. The report shows Alphabet’s net income for fourth quarter at $3.97 billion. The report further shows the composition of Alphabet’s Q4 2015 revenue which shows the advertising revenue and Google websites as the key earning areas.
Out of Alphabet’s $21.3 billion revenue advertising accounted for $16.3 billion while $12.4 billion was generated with Google’s own websites. The figures show a 17% year-over-year growth in advertising revenue and 20% growth in revenue from Google’s own websites. Alphabet also recorded a 31% year-over-year surge in aggregate paid clicks while the cost per click was 13% down as compared with Q4 2014.
While announcing Alphabet earnings, Google CEO Sundar Pichai claims that the number of monthly active Gmail users has just crossed one billion mark. It was another big landmark achieved by Gmail especially when most of the email providers are facing tough challenges by the social media apps and other growing trends.