As of Feb. 1, 2016, Google is the most valuable company on the U.S. stock market, passing the value of Apple for the first time. HebiFot / Pixabay
The Alphabet Company’s subsidiary Google is the most valuable company in the U.S. stock market. It officially passed Apple and soared to the top spot on the afternoon of February 1, 2016.
Google changed its corporate structure and became part of a new company called Alphabet in early October, 2015. Alphabet is a collection of companies led by CEO Larry Page. Google is one of the companies under the Alphabet umbrella, and the most significant. It is a wholly owned subsidiary and is headed up by CEO Sundar Pichai.
All the former owners of Google stock had their shares converted to Alphabet stock at the time of the changeover in October. The Google stock symbol remained the same … GOOGL.
As of the first day of February, 2016, Google is the most valuable company in the U.S. Its stock reached an all-time high in response to an outstanding earnings report.
GOOGL closed today at $770.77 a share. Alphabet’s strong mobile advertising sales were primarily attributed with the strong quarterly profits of the company.
Today, for the first time, Google also revealed how profitable its search engine and other online tools are, as well as how much money it is investing in projects such as self-driving cars.
The company’s consolidated revenue was up 17.8 percent to $21.33 billion in the fourth quarter which ended Dec. 31, compared to $18.10 billion for the same period the year before. Analysts had expected $20.77 billion in fourth quarter revenue.
Alphabet’s combined shares were worth $549 billion this afternoon. This put it above Apple, which had a value of about $534 billion at the same time.
In addition to exceptional earnings, Google also has been stockpiling cash. This gives real value to its stock holders and makes it possible for it to weather any economic setbacks.
In addition, Google owns one of the most popular email programs in the world with one billion monthly users.
Perhaps one of the biggest social signs that Google has become a major factor in American life is that its name has become a verb. Nearly anyone who owns a computer in the U.S. has said at one time or another that they will “Google” any information they need … whether it is directions to a party, a recipe, a news item or an obscure piece of information.
Google Officially Becomes Alphabet
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