Alphabet Inc.’s first quarterly earnings call yesterday was pretty impressive. Not only did the newly formed holding company manage to outperform early expectations, the subsequent spike in stock market activity pushed its market cap above Apple’s, making it the freshly-minted world’s most valuable company.
Alphabet’s debut earnings call revealed a positive start to the conglomerate, with a profit of $4.9 billion on $21.33 billion in revenue for the quarter. This result outperformed early forecasts of $20.77 billion, producing a share price of $8.67 (compared to earlier estimates of $8.10 per share, based on the lower prediction).
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Not surprisingly, the stock market responded favorably, resulting in a 9% increase in Alphabet’s stock, pushing its market cap to $568 billion in after-hours trading. Meanwhile, Apple’s market cap was listed at $535 billion, meaning the world’s most valuable company is now officially Alphabet, just six months after its existence was first announced.
Some analysts are already calling this a passing of the torch from Apple to Google.
Of course, if you look at the NASDAQ right now you’ll see things have stabilized a bit, but as of the writing of this article, Alphabet’s market cap was listed at $527 billion, once again behind Apple’s $535 billion. It may take a few days for the market to stabilize and the full picture to be clear, but some analysts are already calling this a passing of the torch from Apple to Google, in much the same way as Apple dethroned Microsoft back in 2010.
Do you think Alphabet will retain the title?