There is a new king in the business world, Alphabet, parent of Google. Alphabet overtakes Apple and gets the market value of the world largest company. Larry Page and Sergey Brin open this company on October 2, last year. Google is also founded by them on 4th September 1998.
The multinational technology company from the USA is giving internet related services such as advertising, search, email, cloud computing, video sharing, android operating system and so on. Larry page and Sergey Brin founded Google when they were doing Ph.D. at Stanford University.
Main earning source for Google is advertising. Basically, Google gets huge earnings from search result advertisements. Google uses DoubleClick technology to show ads to a targeted audience.
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The parent company of Google founded in 2015. The Alphabet is the holding company which will operate all Google’s products and services. Larry Page said that Alphabet is a collection of companies and a restructured form of Google. The founder mentions this company as new Google.
According to The Economist, Alphabet also made most of the revenue from search advertising. The company became the leader in the business world by getting top position.
Alphabet and Google:
As Larry Page says Alphabet is the new Google, this is the new form to handle all business from one place. There is actually no difference between Alphabet and Google but name.
If you visit Alphabet’s homepage, you will see a line on the top, G is for Google. When you say Alphabet, you actually mean Google. Google still represents all revenues of newly formed Alphabet.
Alphabet, the king in the business world:
Yes, Alphabet is the new king in the business world which company defeats Apple recently. The 1st February of this year was really a great day for Alphabet. Google’s parent became the largest company on this day.
Alphabet brings $21.3 billion in revenue and per-share it makes $8.67. This software company with a few extra hardware business shares have dramatically touched the top line. But Apple, the hardware company with a few extra software businesses can’t touch it.
Ruth Porat, CFO of Alphabet announced their fourth quarter (Q4) earnings report on 1st February. The report shows that the company gets its huge revenue from mobile search, YouTube, and advertising program. The report proves Alphabet as the leading company with a market capital $558 billion when Apple at a market capital $553 billion.
Alphabet also reported that their service Gmail reaches 1 billion active users per month. Another statics shows that
not only Gmail but also YouTube, Google Maps, Chrome and Android. Larry Page, the Alphabet’s CEO said that the company has not stopped there. Alphabet will go and start new ventures.
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Now look at the infographic where I tried to show market capital between Alphabet and Apple. The infographic starts from the year 2006 and the main source is company announcement.
In December 2006, Apple was at $60.6 billion and Google was at $123 billion. 2012 and 2014 were two best years for Apple when they were at the top position. It’s 2016 and Apple has been defeated by Google’s parent Alphabet.