Alphabet took the first line of the ranking of the most expensive companies in the world, replacing Apple. Exactly for a day
Welcome iCover Blog Readers ! Capitalization is one of the main guidelines for companies managing collective investment funds. In particular, among the institutional investors working with ETFs, the Large Cap strategy is very popular - investing in corporations with maximum capitalization. The level of capitalization and its dynamics is a kind of beacon, symbolizing the strength of the company’s position and the correctness of its chosen strategy. That is why the top of the rating is so attractive, both for leading players in the IT market, and for investors who adhere to this strategy.
At the beginning of this week, an event occurred that immediately affected the mood of hundreds of thousands of investors - on February 1, the parent company Google Alphabet submitted a quarterly and annual financial report. An hour later, the curves of the chart of capitalization of Apple (AAPL Market Cap) and Alphabet (GOOGL Market Cap) were first aligned and then crossed, which allowed us to talk about a change in the global market leader in global IT in terms of market capitalization.
As we have already mentioned, the quarterly and annual report provided by Alphabet Finance Department on February 1 was better than analysts had expected. And not just better, this quarterly report, just one hour after the announcement, changed the location of two key figures on the board of the technological Olympus, allowing Alphabet to rise to the throne, where until that moment more than 4 years after the overthrow of ExxonMobil in Apple Apple.
This situation becomes clear if you look at the graphs of the dependence of the volume of capitalization of Google and Alphabet on time with a period of a month. A relatively dynamic growth in Google’s positions (blue chart) since mid-July and chaotic and choppy, in some places in growth, Apple’s red chart, decreasing since the beginning of November 2015.
The relatively even upward dynamics of the Alphabet chart is explained by the very specifics of the income structure: Google is still firmly holding the position of the planet’s most popular search engine, YouTube - the leading video hosting service, Android - the most common mobile OS of the system. Stable income of the order of $ 2 billion in the form of a monthly fee for using cloud services and from the sales of the Google Play application store, as well as collection from advertising, also come quite regularly and predictably.
The results of the company for the IV quarter and 2015, announced on February 1 by Alphabet Finance Department, exceeded the most daring expectations of analysts. Over the past 3 months of last year, the company managed to earn $ 21.329 billion instead of the estimated $ 20.8 billion, which added its quotes to almost 9% and 18% higher than last year ($ 18.103 billion). Given the change in the exchange rate, the increase was 24%. At the same time, operating profit for the quarter increased by 25%, amounting to $ 5.380 billion, and net - $ 4.923 billion (compared to $ 4.675 billion in the fourth quarter of 2014).
Alphanet financial results for the fourth quarter of 2014/2015
In addition to summing up the results for the IV financial quarter, the company also provided for publication the results of work for the past 12 months, divided into 2 segments. Google’s operating profit increased from $ 19.011 billion in 2014 to $ 23.425 billion in 2015, and revenue from $ 65.674 billion to $ 74.541 billion, respectively. The revenue of the remaining divisions amounted to $ 448 million. The
financial results of Google and other divisions of Alphanet for the 12 months of 2014/2015
The table shows that the lion's share of Alphabet's revenue ($ 23.425 billion) was provided by popular Google services, which included advertising, Google Maps, revenue from the sale of Android applications and the You-Tube channel etc. So, according to the results of the 4th quarter, the team of Sundar Pichai earned almost $ 20 billion. The remaining divisions of Alphabet Holding ended the year with a loss - their operating losses amounted to $ 3.567 billion. According to the information given, it becomes clear why analysts have already managed to call Google “typewriter” for the entire holding Alphabet.
It should be noted that some analysts pointed out that in the long run Google will be able to outperform Apple in terms of capitalization back in 2014 based on the comparative growth rates of two IT giants: 32% from Apple versus 57% from Google from January 2013 to September 2014 So, according to experts from the Wall Street Journal, Google will be the first company whose market value can reach and exceed the $ 1 trillion bar. until 2020.
The reorganization and openness policy of the company played a role in ensuring a stable income. Having gathered nine companies under your umbrella and having appointed a personal CEO in each of them, Google has significantly expanded the opportunities for the development of each individual direction. For comparison, before the global restructuring and creation of Alphabet, all the responsible final decisions on projects were made by only a few people, which inevitably entailed a fatal bureaucratization of the processes. Today, the development of each key area has gone much faster, and the volume of investments in promising projects for the reporting period of 2015 has almost doubled in comparison with 2014, from S1.94 billion to S3.57 billion, respectively. And shareholders take such initiatives with enthusiasm, despite the fact that they obviously do not promise quick profits,
One of the promising projects being developed by the Alphabet division, Google X, Project Loon, whose goal is to deliver the Internet to all corners of the globe, in its future will increase the number of users of Google services. In test mode, the project has already been launched in Sri Lanka. The second project, which is in the area of special attention of the company, is Google Auto, dedicated to the development of unmanned vehicles, which in the future could become one of the popular ways of transportation for millions of people, again, potential users of the Google service - Alphabet. And purposefully to support such initiatives, Alphabet has created a special project for the development of urban infrastructure. At the same time, at this stage, the company attracts the bulk of the revenue “the old fashioned way”, due to the monetization of advertising traffic.
One way or another, but the fact of "castling" took place:
)
“Fiscal year 2015 was the most successful year in the history of Apple, annual revenue grew by 28% and reached almost $ 234 billion. This success was made possible thanks to our commitment to creating the best and most advanced products in the world, which is evidence of the tremendous skill of our team, - said Tim Cook, chief executive of Apple. “We are approaching the holiday season with the best line of products ever created by the company, which includes the iPhone 6s and iPhone 6 Plus , the Apple Watch with an expanded range of cases and bracelets, the new iPad Pro and the brand new Apple TV , which will begin shipping this week ”(October 2015).
“Apple’s record results in the September quarter saw earnings increase per share of 38% and quarterly cash flow from operations was $ 13.5 billion,” said Luca Maestri, Apple CFO. - During the quarter, we returned $ 17 billion to our investors in the form of share buybacks and dividend payments. To date, the total amount of payments to investors has exceeded $ 143 billion out of the $ 200 billion we have laid down in the capital return program. ”
Apple forecasts for the first quarter of fiscal year 2016:
Revenue from $ 75.5 billion to $ 77.5 billion.
Gross margin from 39% to 40%
Operating expenses from $ 6.3 billion to $ 6.4 billion.
Other income / (expenses) of $ 400 million.
Tax deductions of 26.2%.
Such data were published on the official Apple website on October 27, 2015. Well, that sounds good. But many experts agree that the current year will not be the easiest for Apple and financial indicators in reality will not be able to come close to forecasts voiced by Tim Cook last fall. How will the intrigue develop further in the nearest historical retrospective time will show.
A day later, Apple regained the title of absolute heavyweight champion among IT giants of the first magnitude. As a result of trading on the NASDAQ on Tuesday, the market price of Alphabet fell by almost 5% to $ 520 billion, while Apple, by contrast, gained 1.8%, reaching $ 524 billion. Thus, the leader who dropped the crown for a day , managed to catch her almost on the fly and with a minimum margin continued the race.
The last time Google overtook Apple in terms of capitalization back in 2010 - then both companies were valued at close to $ 200 billion. However, by 2012, Apple made a historic leap, having risen in price to $ 650 billion, while Google's capitalization was almost unchanged. In 2011, Apple overtook ExxonMobil, becoming the most expensive company in the world in terms of market capitalization, and maintained this status for almost five years.
From 2008 to 2010, Apple and Google repeatedly changed places in the leaderboard. Therefore, it is impossible to exclude the possibility that in the very near future the treasured crown at the next round of confrontation between “bulls” and “bears” for an indefinite period of time will not again go to Alphabet, so that then again for a while again return to the Apple King.
Alphabet
cnbc.com
Forbes
apple.com
Dear readers, we are always happy to meet and wait for you on the pages of our blog. We are ready to continue sharing with you the latest news, review materials and other publications, and will try to do our best to make the time spent with us useful for you. And, of course, do not forget to subscribe to our sections . Our other articles and events
At the beginning of this week, an event occurred that immediately affected the mood of hundreds of thousands of investors - on February 1, the parent company Google Alphabet submitted a quarterly and annual financial report. An hour later, the curves of the chart of capitalization of Apple (AAPL Market Cap) and Alphabet (GOOGL Market Cap) were first aligned and then crossed, which allowed us to talk about a change in the global market leader in global IT in terms of market capitalization.
As we have already mentioned, the quarterly and annual report provided by Alphabet Finance Department on February 1 was better than analysts had expected. And not just better, this quarterly report, just one hour after the announcement, changed the location of two key figures on the board of the technological Olympus, allowing Alphabet to rise to the throne, where until that moment more than 4 years after the overthrow of ExxonMobil in Apple Apple.
This situation becomes clear if you look at the graphs of the dependence of the volume of capitalization of Google and Alphabet on time with a period of a month. A relatively dynamic growth in Google’s positions (blue chart) since mid-July and chaotic and choppy, in some places in growth, Apple’s red chart, decreasing since the beginning of November 2015.
The relatively even upward dynamics of the Alphabet chart is explained by the very specifics of the income structure: Google is still firmly holding the position of the planet’s most popular search engine, YouTube - the leading video hosting service, Android - the most common mobile OS of the system. Stable income of the order of $ 2 billion in the form of a monthly fee for using cloud services and from the sales of the Google Play application store, as well as collection from advertising, also come quite regularly and predictably.
Short castling
The results of the company for the IV quarter and 2015, announced on February 1 by Alphabet Finance Department, exceeded the most daring expectations of analysts. Over the past 3 months of last year, the company managed to earn $ 21.329 billion instead of the estimated $ 20.8 billion, which added its quotes to almost 9% and 18% higher than last year ($ 18.103 billion). Given the change in the exchange rate, the increase was 24%. At the same time, operating profit for the quarter increased by 25%, amounting to $ 5.380 billion, and net - $ 4.923 billion (compared to $ 4.675 billion in the fourth quarter of 2014).
Alphanet financial results for the fourth quarter of 2014/2015
In addition to summing up the results for the IV financial quarter, the company also provided for publication the results of work for the past 12 months, divided into 2 segments. Google’s operating profit increased from $ 19.011 billion in 2014 to $ 23.425 billion in 2015, and revenue from $ 65.674 billion to $ 74.541 billion, respectively. The revenue of the remaining divisions amounted to $ 448 million. The
financial results of Google and other divisions of Alphanet for the 12 months of 2014/2015
The table shows that the lion's share of Alphabet's revenue ($ 23.425 billion) was provided by popular Google services, which included advertising, Google Maps, revenue from the sale of Android applications and the You-Tube channel etc. So, according to the results of the 4th quarter, the team of Sundar Pichai earned almost $ 20 billion. The remaining divisions of Alphabet Holding ended the year with a loss - their operating losses amounted to $ 3.567 billion. According to the information given, it becomes clear why analysts have already managed to call Google “typewriter” for the entire holding Alphabet.
It should be noted that some analysts pointed out that in the long run Google will be able to outperform Apple in terms of capitalization back in 2014 based on the comparative growth rates of two IT giants: 32% from Apple versus 57% from Google from January 2013 to September 2014 So, according to experts from the Wall Street Journal, Google will be the first company whose market value can reach and exceed the $ 1 trillion bar. until 2020.
The reorganization and openness policy of the company played a role in ensuring a stable income. Having gathered nine companies under your umbrella and having appointed a personal CEO in each of them, Google has significantly expanded the opportunities for the development of each individual direction. For comparison, before the global restructuring and creation of Alphabet, all the responsible final decisions on projects were made by only a few people, which inevitably entailed a fatal bureaucratization of the processes. Today, the development of each key area has gone much faster, and the volume of investments in promising projects for the reporting period of 2015 has almost doubled in comparison with 2014, from S1.94 billion to S3.57 billion, respectively. And shareholders take such initiatives with enthusiasm, despite the fact that they obviously do not promise quick profits,
One of the promising projects being developed by the Alphabet division, Google X, Project Loon, whose goal is to deliver the Internet to all corners of the globe, in its future will increase the number of users of Google services. In test mode, the project has already been launched in Sri Lanka. The second project, which is in the area of special attention of the company, is Google Auto, dedicated to the development of unmanned vehicles, which in the future could become one of the popular ways of transportation for millions of people, again, potential users of the Google service - Alphabet. And purposefully to support such initiatives, Alphabet has created a special project for the development of urban infrastructure. At the same time, at this stage, the company attracts the bulk of the revenue “the old fashioned way”, due to the monetization of advertising traffic.
One way or another, but the fact of "castling" took place:
What about Apple?
“Fiscal year 2015 was the most successful year in the history of Apple, annual revenue grew by 28% and reached almost $ 234 billion. This success was made possible thanks to our commitment to creating the best and most advanced products in the world, which is evidence of the tremendous skill of our team, - said Tim Cook, chief executive of Apple. “We are approaching the holiday season with the best line of products ever created by the company, which includes the iPhone 6s and iPhone 6 Plus , the Apple Watch with an expanded range of cases and bracelets, the new iPad Pro and the brand new Apple TV , which will begin shipping this week ”(October 2015).
“Apple’s record results in the September quarter saw earnings increase per share of 38% and quarterly cash flow from operations was $ 13.5 billion,” said Luca Maestri, Apple CFO. - During the quarter, we returned $ 17 billion to our investors in the form of share buybacks and dividend payments. To date, the total amount of payments to investors has exceeded $ 143 billion out of the $ 200 billion we have laid down in the capital return program. ”
Apple forecasts for the first quarter of fiscal year 2016:
Revenue from $ 75.5 billion to $ 77.5 billion.
Gross margin from 39% to 40%
Operating expenses from $ 6.3 billion to $ 6.4 billion.
Other income / (expenses) of $ 400 million.
Tax deductions of 26.2%.
Such data were published on the official Apple website on October 27, 2015. Well, that sounds good. But many experts agree that the current year will not be the easiest for Apple and financial indicators in reality will not be able to come close to forecasts voiced by Tim Cook last fall. How will the intrigue develop further in the nearest historical retrospective time will show.
Meanwhile
A day later, Apple regained the title of absolute heavyweight champion among IT giants of the first magnitude. As a result of trading on the NASDAQ on Tuesday, the market price of Alphabet fell by almost 5% to $ 520 billion, while Apple, by contrast, gained 1.8%, reaching $ 524 billion. Thus, the leader who dropped the crown for a day , managed to catch her almost on the fly and with a minimum margin continued the race.
The game of thrones
The last time Google overtook Apple in terms of capitalization back in 2010 - then both companies were valued at close to $ 200 billion. However, by 2012, Apple made a historic leap, having risen in price to $ 650 billion, while Google's capitalization was almost unchanged. In 2011, Apple overtook ExxonMobil, becoming the most expensive company in the world in terms of market capitalization, and maintained this status for almost five years.
From 2008 to 2010, Apple and Google repeatedly changed places in the leaderboard. Therefore, it is impossible to exclude the possibility that in the very near future the treasured crown at the next round of confrontation between “bulls” and “bears” for an indefinite period of time will not again go to Alphabet, so that then again for a while again return to the Apple King.
Alphabet
cnbc.com
Forbes
apple.com
Dear readers, we are always happy to meet and wait for you on the pages of our blog. We are ready to continue sharing with you the latest news, review materials and other publications, and will try to do our best to make the time spent with us useful for you. And, of course, do not forget to subscribe to our sections . Our other articles and events