Alphabet could keep the title of the most expensive company in the world for more than a few hours, if not spent
Holding Alphabet Inc. (since summer 2015, Google has been a part of it) has become the most expensive company in the world for a few hours. This happened after the publication of the company's financial report for the fourth quarter of 2015. Stocks Alphabet in the hour of trading jumped in price by 9%.
Quarterly reporting and soaring share prices allowed Alphabet to circumvent Apple ’s market capitalization, which had previously been an expensive company in the world, the BBC reported .
According to the report, Alphabet's net profit in the fourth quarter of 2015 rose to $ 4.9 billion, which is $ 200 million more than a year ago. Revenues for the IV quarter increased by 19% to $ 17.3 billion, which is higher than analysts' forecast ($ 16.9 billion). Earnings per share were $ 8.67 against the projected $ 8.08. The company's results exceeded analysts' expectations.
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For several hours Alphabet was estimated at $ 554 billion, the company's capitalization rose even to $ 568 billion. At that time, Apple was worth $ 534 billion, and the price of its shares was declining.
Experts noted that the situation could change after the start of the next auction, or Alphabet finally strengthened its position. Some of them believe that the holding has every chance of becoming the first company whose price exceeds $ 1 trillion. Earlier, similar forecasts were addressed to Apple. However, at the moment the market capitalization of the latter is $ 539.71 billion, and Alphabet now costs $ 517.24 billion.
Ruth Porat, the company's CFO, explained that revenue increased through mobile search, YouTube, as well as the automation of advertising purchases (programmatic advertising). The company (still within Google) has invested in these areas for many years in a row.
Alphabet financial results could be even better than now, if the company had not spent a lot of money on research and experimental projects.
Among them - unmanned vehicles, Calico (a project in the field of health), Google Life Sciences (now - Verily ). All of them are included in the report called “other incomes”. In addition, Nest and Google Fiber were included there, which brought the majority of revenue ($ 448 million) to the “other incomes” category. However, Alphabet's “other expenses” reached $ 3.6 billion, TechCrunch reports . This is due to a comprehensive approach to research and the development of pilot projects.
“Google is generally an interesting story, because in California, the law requires companies to have a clear view of research and development, so if Google is working on a cure for cancer, - and Google is developing in many ways, because they are trying to have all the knowledge posted on the Internet, like owned and re-created - this is a comprehensive activity, ” said General Counsel Y Combinator John Levy (Jon Levy) in the program Startup School Radio.
Experts agree that the business Alphabet has become more successful than Apple, writes TechCrunch. They are not competitors in the market, but may well be worthy rivals in the fight for the title of the most expensive company in the world. Apple’s core business (production and sale of mobile devices) showed poor results - the first in the last 13 years, the drop in revenues. In the history of the company, the pace of sales was the lowest, after which Apple’s quotations began to fall.
Corporations need a new breakthrough product. Alphabet continues to develop its search and advertising business.
Quarterly reporting and soaring share prices allowed Alphabet to circumvent Apple ’s market capitalization, which had previously been an expensive company in the world, the BBC reported .
According to the report, Alphabet's net profit in the fourth quarter of 2015 rose to $ 4.9 billion, which is $ 200 million more than a year ago. Revenues for the IV quarter increased by 19% to $ 17.3 billion, which is higher than analysts' forecast ($ 16.9 billion). Earnings per share were $ 8.67 against the projected $ 8.08. The company's results exceeded analysts' expectations.
')
For several hours Alphabet was estimated at $ 554 billion, the company's capitalization rose even to $ 568 billion. At that time, Apple was worth $ 534 billion, and the price of its shares was declining.
Experts noted that the situation could change after the start of the next auction, or Alphabet finally strengthened its position. Some of them believe that the holding has every chance of becoming the first company whose price exceeds $ 1 trillion. Earlier, similar forecasts were addressed to Apple. However, at the moment the market capitalization of the latter is $ 539.71 billion, and Alphabet now costs $ 517.24 billion.
Ruth Porat, the company's CFO, explained that revenue increased through mobile search, YouTube, as well as the automation of advertising purchases (programmatic advertising). The company (still within Google) has invested in these areas for many years in a row.
Alphabet financial results could be even better than now, if the company had not spent a lot of money on research and experimental projects.
Among them - unmanned vehicles, Calico (a project in the field of health), Google Life Sciences (now - Verily ). All of them are included in the report called “other incomes”. In addition, Nest and Google Fiber were included there, which brought the majority of revenue ($ 448 million) to the “other incomes” category. However, Alphabet's “other expenses” reached $ 3.6 billion, TechCrunch reports . This is due to a comprehensive approach to research and the development of pilot projects.
“Google is generally an interesting story, because in California, the law requires companies to have a clear view of research and development, so if Google is working on a cure for cancer, - and Google is developing in many ways, because they are trying to have all the knowledge posted on the Internet, like owned and re-created - this is a comprehensive activity, ” said General Counsel Y Combinator John Levy (Jon Levy) in the program Startup School Radio.
Experts agree that the business Alphabet has become more successful than Apple, writes TechCrunch. They are not competitors in the market, but may well be worthy rivals in the fight for the title of the most expensive company in the world. Apple’s core business (production and sale of mobile devices) showed poor results - the first in the last 13 years, the drop in revenues. In the history of the company, the pace of sales was the lowest, after which Apple’s quotations began to fall.
Corporations need a new breakthrough product. Alphabet continues to develop its search and advertising business.
Source: https://habr.com/ru/post/298356/
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