Google’s parent company, Alphabet, has finally kicked Apple off their throne as the World’s Most Valuable Company. This came after Google posted stunning growth in the last quarter, mostly fueled by digital advertising.
Alphabet is a spin off from Google business and in its first ever business report, the company posted a profit of $4.9 billion. This is up from the $4.7 billion it listed as profit before the spin off. This report sent Wall Street into a frenzy, boosting the company’s stock price and giving it an approximate overall worth of $570 billion, which is more than Apple’s current worth of $535 billion.
Even though Apple announced record quarter sales just last week, the company is facing a rocky road in 2016. Smart phone sales have stalled while advertising via mobile phones is hotter and more profitable than ever. Google is still the preferred search engine and that engine appears to have unlimited potential, which is driving company profits through the roof.
Google’s hiring of a new Chief Financial Officer, Ruth Porat, a former Wall Street executive with a great deal of experience, has helped to bring financial discipline to the company. This, in combination with growth and transparency, has allowed the company to find its own magic potion that continues to bring new customers, especially in the area of click marketing.
Apple had disappointing sales with their iPhone 6s, which has some questioning if Apple has reached its pinnacle. There are plans to release a completely new iPhone later this year, so this news does not necessarily mean that Apple is out of the race but that this giant might have simply stumbled a bit right out of the 2016 gate.
At its core, Google has always been an advertising and search engine company but their latest forays into self-driving cars, fighting cancer, and Internet beaming drones has made this company one of great interest to the public. For investors, the thought that Alphabet might spin off some of these endeavors in to even more profitable companies, these ideas are like ringing the bell for Pavlov’s dogs. They see the potential for huge profits and are willing to part with their hard earned cash in hopes of, one day soon, cashing in.
This is a huge mile marker for Alphabet and Google as many in the industry thought Apple the unbeatable business model. Apple now needs to become a “prove it” company to Wall Street in order to regain their title and throne.
Source: ABC News
xGoogle’s parent company, Alphabet, has finally kicked Apple off their throne as the World’s Most Valuable Company. This came after Google posted stunning growth in the last quarter, mostly fueled by digital advertising.
Alphabet is a spin off from Google business and in its first ever business report, the company posted a profit of $4.9 billion. This is up from the $4.7 billion it listed as profit before the spin off. This report sent Wall Street into a frenzy, boosting the company’s stock price and giving it an approximate overall worth of $570 billion, which is more than Apple’s current worth of $535 billion.
Even though Apple announced record quarter sales just last week, the company is facing a rocky road in 2016. Smart phone sales have stalled while advertising via mobile phones is hotter and more profitable than ever. Google is still the preferred search engine and that engine appears to have unlimited potential, which is driving company profits through the roof.
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Google’s hiring of a new Chief Financial Officer, Ruth Porat, a former Wall Street executive with a great deal of experience, has helped to bring financial discipline to the company. This, in combination with growth and transparency, has allowed the company to find its own magic potion that continues to bring new customers, especially in the area of click marketing.
Apple had disappointing sales with their iPhone 6s, which has some questioning if Apple has reached its pinnacle. There are plans to release a completely new iPhone later this year, so this news does not necessarily mean that Apple is out of the race but that this giant might have simply stumbled a bit right out of the 2016 gate.
At its core, Google has always been an advertising and search engine company but their latest forays into self-driving cars, fighting cancer, and Internet beaming drones has made this company one of great interest to the public. For investors, the thought that Alphabet might spin off some of these endeavors in to even more profitable companies, these ideas are like ringing the bell for Pavlov’s dogs. They see the potential for huge profits and are willing to part with their hard earned cash in hopes of, one day soon, cashing in.
This is a huge mile marker for Alphabet and Google as many in the industry thought Apple the unbeatable business model. Apple now needs to become a “prove it” company to Wall Street in order to regain their title and throne.
Source: ABC News
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