Google, or Alphabet as its parent company, raked in a nice $21.3 billion in total sales and adjusted profits of $8.67 for its every Class A share. With total sales up 18 percent over the previous year, the company’s revenue/earnings are looking rather impressive overall. For Alphabet, there were several key areas in where the company grew its value and revenue. The advertising rose by 17 percent compared to the same period the year before, giving the company a nice revenue bump during that period.
Immediately after the announcement, shares rose 1.22 percent to hit $752 per share in normal trading resulting in a market capitalization of $517.17 billion. The Alphabet value kept rising after the bell as well. The stock at one point touched $813 per share, bringing its market cap up to $559.13 billion.Compared to Apple, which ended with $96.43 with a market cap of $538.7 billion one can clearly see the increase.
One day later, the situation changed – Apple is back on top after Alphabet dropped by 5%, with a total market capitalization reaching $511 billion, while Apple recovered to $524.4 billion. Still, both companies are feeling consequences of ‘black January’, which was market with China’s slide.
Despite Apple’s success in the mobile technology field and several other advancements, it seems Google (and other companies) are catching up, making life hard for the somewhat struggling tech juggernaut overall. It seems Apple’s growth stagnated for the past year. While the casual onlooker may feel the company is as strong as ever, we have yet to see a new revolutionary device hit the stores – something that the Apple Watch clearly didn’t achieve throughout last year and then some. The company was rumored to be working on an electric and/or self driving automobile. But, nothing is confirmed as of late.
On the other hand, Google is pushing Android, Adwords, Adsense, Fiber and a slew of different services and products rather efficiently. This yields better marketing coverage, increased brand awareness, improved sales, but above all, provides a better starting position for Google in several upcoming areas.
We’ll report on the future financial aspects of Apple, Google and others, so keep checking our companies section for more up to date news in the future.