Google shatters forecasts and unseating Apple as the most valuable company in the world
Yes, we should refer to it as Alphabet, but for practical and reference to the famous company issues, we still like Google. Well today the Mountain View Company has released financial results for the fourth quarter of 2015, which in turn means the fiscal year end. Something that analysts and investors awaited with great expectation, since this is the first annual results as a company Alphabet, which also for the first time are finding business data “secrets”, of which we had never had data.
In short, Google is reporting revenues of 21,320 million, ie 18% more than the previous year, where analysts were predicting about 20,000. In addition to advertising it grew significantly, despite Facebook’s growth in this sector has meant that Google is losing share. All this has meant that so far the shares of the company are firing beyond 8%.
Alphabet has been a winning bet
In general Google is showing very good numbers for both income to overall earnings, this despite that many businesses report, but this is something that has been on Google for many years, who usually invest in companies and projects but and then these appear to be closed.
Therefore, the movement to unify and wean all these projects under Alphabet gives certainty to the company, this after many investors criticized the risky way to invest by Google, so now everything is handled separately and those who invest money in the company, they can take comfort in knowing which projects are successful and which are not, so you know where to invest.
One of the concerns that existed around Google was its dependence on the business of web advertising, which began to decline with the passage of time, as well as Facebook snatched the top spot from Google. But for this last quarter, Google is reporting a very significant increase of over 31% in paid clicks , a very important figure for the company, which in 2014 closed at 14%.
Of course in presenting these figures, the bulk of the business of Google reported earnings , including Google Play with revenues of 2,100 million, an increase of 24% over the previous year; the same goes for Google Websites (where it is YouTube) with incomes of $ 14,900 million, an increase of 20% over 2014; Networks and Google which shows an increase of 7% compared to 2014, remaining at 4,140 million dollars.
How are the special projects of Google?
For the first time in the financial results of the company, we see the apartador “Other Bets” where projects fall autonomous cars, balloons Internet Project Loon and Google Fiber, which together reported losses, but where Google emphasizes that it is growing projects , in the medium term they will be the most successful and therefore require constant investment.
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Revenues from “Other Bets” barely reach 448 million, while operating expenses represent 3,560 million, which is very similar to what happened in 2014, which reported 327 million income and expense 1,900 million. As we see the costs have grown, but this is because it is betting heavily on these projects.
Despite this, analysts predicted losses of nearly 5 million, so the figures reported were favorably received, and hence their participation in the stock market continues to rise in the “after hours”.
Google is already the most valuable company in the world
All this has meant that the market is reacting very favorably, causing Google to overtake Apple and stands as the most valuable company in the world, a title already held in Montain View.
In addition, Google boasts that Gmail service is the most widely used email on the planet with over one billion users, and until you stand up to Facebook, saying the social network “boasted” of its 100 million daily hours video while YouTube get figures exceeding billions of daily hours of video.
Undoubtedly 2016 is seen as a big year for Google, started strongly, not depending on a single service or product, diversifying its business and attracting new investors, who now more than ever want to be part of the growth of the company.