Google Surpasses Apple To Become The Most Valuable Company – Apple’s Armor Finally Showing Cracks
Today is a glorious day in history for camp Google, because the tech company has managed to takeover Apple as the most valuable company in the world as you will see in the latest financial reports.
Take A Look At The Latest Financials To See What Kind Of Lead Google Managed To Maintain Over Apple
According to the latest report, Google’s parent company Alphabet had posted earnings and revenue on Monday that had surpassed analysts’ expectations. The company reported fourth quarter earnings of $8.67 per Class A share on $21.33 billion in revenue and sales had risen 18 percent as opposed to the previous year. As for the expectations, analysts predicted that Alphabet would post earnings of $8.10 per Class A share on $20.77 billion in revenue. Alphabet Chief Financial Officer Ruth Porat stated the following in a statement on the financial performance of the company.
“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.”
The company’s board has also authorized a buyback of an additional 514,000 shares. Now for the clash of the titans; the company’s shares jumped as much as 9 percent in after-hours trading, and reached a stage where it successfully surpassed Apple as the most valuable company, according to market capitalization. Given below are the market caps for both companies.
- Alphabet: $550 billion USD (approx.)
- Apple: $538 billion USD (approx.)
Google’s advertising business was the primary growth generator and had climbed to $19.08 billion, up 17 percent from the previous year. Aggregate paid clicks, which happens to be a key advertising metric, rose 31 percent compared to the previous year and beat expectations of approximately 22 percent. Apple’s primary growth was iPhone sales, but according to one analyst, the company’s upcoming iPhone 5se will not contribute greatly to the company’s success, because its MacBook Pro lineup, which is going to feature Intel’s Skylake processors are going to add to that.
In a separate report, it is expected that Apple plans on shipping 20 million notebooks for 2016, and with the latest hardware, we expect that these machines will do mildly better compared to the previous generation. However, with smartphones becoming saturated, Apple will definitely have to rely on another revenue stream. Do you think Apple will successfully be able to bounce back in 2016? Let us know your thoughts.