Google parent Alphabet ‘overtakes Apple’ as world’s most valuable company

Google’s parent firm is set to overtake Apple as the world’s most valuable company by market value after its latest revenues smashed expectations. Alphabet’s share price rose almost 5% in after-hours trading following the release of its fourth quarter and annual results which, if repeated when the markets reopen for trading on Tuesday, should easily take it to the top of the corporate pile. The rise would put Alphabet’s value at $549bn (£382bn) compared to Apple’s market capitalisation of about $534bn (£371bn). Google’s owner reported a 17.8% increase in quarterly revenue to $21.3bn - crediting strong advertising sales on mobile devices and YouTube.

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

Profits for the three months to the end of December came in at $4.9bn - a rise of 5% on the same period last year. That was despite its raft of experiments, or 'moonshots’, collectively racking up operating losses of $1.2bn in the quarter. Those losses topped $3.5bn for the year. While Google did not list the financial progress of each one, they include its driverless car, glucose-monitoring contact lens and Internet balloon projects - the latter, known as Project Loon, aiming to deliver connectivity to areas of the world without it from a network of balloons.

Alphabet