The Alphabet Holding to the Internet giant Google has reached a milestone: After submission of better than expected quarterly results alphabet has overtaken on Monday in after-hours trading the electronics giant Apple in market capitalization. If this is confirmed on Tuesday in regular trading, Alphabet is the most expensive company in the world. The price of the shares rose after trading Alphabet temporarily by more than 8 percent, bringing the market value rose to more than 550 billion dollars. Apple is currently around 535 billion US dollars.
Author: Roland Lindner, economics correspondent in New York.
The Alphabet share won in the past twelve months, around 40 percent of its value, while the Apple price has fallen over this period by almost 18 percent. Apple was founded in August 2011 as the most highly valued companies in the world and triggered then the oil giant Exxon-Mobil from.
The number of alphabet was not only because of the race with Apple for the title of most expensive company in the world with eagerly awaited. For the first time there was an insight into the structure of the jobs created last fall Alphabet Holding. This parent company Google itself is only one of several subsidiaries. This includes not only the eponymous search engine, but also items like the video service YouTube and the Android operating system to Google. Separately, the other alphabet-units, for example, nest, a maker of Internet-enabled products for the household, or healthcare company Calico. These other units are now combined under the name “Other bets” shown separately from Google.
Other Alphabet units hochdefizitär
As has been doing now been found, bringing these activities hitherto poorly sales and are hochdefizitär. In total 2015 their sales were at 448 million dollars and its operating loss was 3.6 billion dollars. The core business of Google came on the other hand on a turnover of 74.5 billion and an operating profit of 23.4 billion dollars.
Chief Financial Officer Ruth Porat said in a conference call that sales of “Other bets” date before all come from the three companies Nest, Fiber and Verily. Fiber is an initiative with which Google households in a number of American cities provides fast Internet access. Verily specializes in medical technology and works for example at a smart contact lens for diabetics, the blood glucose levels measured in the tear fluid. Many other alphabet units achieve by Porat words as yet no sales. Next she said, of all the “Other bets” invest Alphabet currently most in the Fiber project. However, they also pointed out that the “vast majority” of investments still flowed into the core business of Google.
More cost discipline
Porat came just last year for companies. Since its beginning, it has provided more cost discipline in view. That came on Wall Street at the Well, where Google has often been reproached, spend his money too carelessly. Again Porat struck similar notes and said, just overlooking the “Other bets” pursue alphabet a “rigorous” approach in cost management.
In the Group as a whole alphabet expanded its turnover in the last quarter by 18 percent to 21 , 3 billion dollars. Analysts had expected an average of 20.8 billion dollars. Adjusted for currency effects, it would have even been a growth of 24 percent. Net income was 4.9 billion dollars, earnings per share of $ 8.67 was up 57 cents better than expected. As Porat said, the Group benefited in the last quarter mainly by a good business with Internet search to mobile devices with smartphones and a “very significant sales growth” of Youtube.
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Apple has presented its figures already in the past week, thereby providing for disappointment. Although Apple delivered record numbers, but the growth has come to a virtual halt. The sales figures for the iPhone, the Group’s single most important product is, as little risen as never before since the introduction of the device in 2007. For the coming quarter, the company said even its first drop in sales for more than a decade ahead.
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