Google’s parent company Alphabet has become the world’s most valuable company by beating Apple as after its latest earnings report.
What it means is that the company that own the search engine giant is now worth around $568 bn, compared with Apple, which is currently valued at $535 bn.
Alphabet made a profit of $4.9 bn for the fourth quarter, an increase from $4.7 bn one year ago.
As expected the announce has had quite an impact on Alphabet’s share prices, which went up close to 9% in the late hours trading.
“It looks like Google continues to execute on mobile [advertising],” Neil Doshi managing director of research at Mizuho Securities was quoted by BBC.
He added, “Two or three years ago mobile was a big head wind for Google. There were concerns that it [had] a negative impact on its desktop business, but as mobile takes over for more searches, mobile ads are becoming closer in value to the desktop ads.”
It is the first time that Alphabet has separated out the results of its Google business – which includes the search engine and YouTube – from its “Other Bets” business, which includes more experimental ventures such as self-driving cars and internet balloon programs.
On an annual basis, Alphabet made $16.3bn but the figures show that the “Other Bets” business lost $3.6bn during the period, while Google’s operating income rose to $23.4bn, as online advertising increased.
The last time Google was more valuable than Apple was in February 2010, when both companies were worth less than $200 billion.