Google/Alphabet hits historic high on earnings
San Francisco, Feb 2: Alphabet, the new parent firm for Google, pushed into record territory as a strong quarterly report put it on track to be the world's most valuable company.
Alphabet yesterday reported that quarterly profit rose five per cent to USD 4.92 billion on the back of strong online advertising revenue. The California-based Internet colossus said its revenue topped USD 21.3 billion in the final three months of last year.
Alphabet shares jumped more than five percent to USD 794 on earnings figures that beat expectations. If those gains hold in official trading, Alphabet would overtake Apple as the world's biggest company by market value.
At the official close of trade, Apple was worth USD 534.7 billion based on its share value to USD 530.1 billion for Alphabet.
"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," Alphabet chief financial officer Ruth Porat said in the earnings release.
"We're excited about the opportunities we have across Google and Other Bets to use technology to improve the lives of billions of people."
The earnings report was the first in which recently formed parent corporation Alphabet separated money made by Google from "other bets" such as its work on self-driving cars or delivering Internet using high-altitude balloons.
Alphabet's earnings listed a loss of about USD 3.6 billion last year in a consolidated "other bets" category that brought in USD 448 million in revenue. Alphabet reported that its overall revenue for last year rose to USD 74.5 billion from USD 65.7 billion in 2014.
Alphabet subsidiaries include Google, Nest Labs, and Google X labs devoted to big-vision new technologies such as self-driving cars.
The move unveiled last year gives the tech giant more ability to focus on its core business, while offering startup-like flexibility to long-shot, trailblazing projects.