Alphabet crowned most valuable tech company
Alphabet exposed ‘better than expected’ results and for the first time provided insight into its other businesses
Google's parent company, Alphabet, has been titled the world's most valuable company, taking away Apple's top spot.
For the first time, the technology company dissected its financial results and revealed it made a profit of $4.9bn in its fourth quarter, compared to $4.7bn a year ago. These figures mean Alphabet is now worth around $568bn, compared to Apple, which is valued at $535bn.
The results were split into two segments: Alphabet's profitable search and advertising business, including Google, and its ‘other bets' projects, which include its experimental ventures, such as its high-speed Internet service Venture and Capital, Google Fiber, self-driving cars, drone projects and smart home devices.
The company reported its segment revenues for 2015 were $74.5bn and it made a profit of $23.4bn, compared to 2014, its segment revenues were $65.67bn and profits were over $19bn. Its moonshot projects in 2015 made revenues of $448m and lost $3.5bn, and compared to 2014 it made revenue of $327m and lost $1.9bn.
Despite Wall Street's concerns over how much its core business Google was being used to fund its experimental projects, investors were left relieved after shared rose by 8% in after-hours trading.
Alphabet's CFO, Ruth Porat said: "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. We're excited about the opportunities we have across Google and other bets to use technology to improve the lives of billions of people."
Alphabet's existence is down to Google giving itself a parent company to separate its riskier projects from its core business earnings.