With Alphabet’s shares in the green today after posting strong earnings last night and Apple’s stock giving up some ground, Alphabet has retaken the #1 spot to become the world’s most valuable publicly-traded company after a near six-year hiatus.
The Google unit continues to dominate the digital search and advertising business, including mobile, where it is showing robust growth. Advertising revenue, on a year-over-year basis, rose by nearly 17% on the heels of the cost per click declining by 5% and paid clicks soaring by nearly 22%. Investors were also encouraged by news from the company’s “Other Bets,” which include various units such as Google Fiber, Nest, driverless cars, and other smaller projects. The company has been trying to show greater financial discipline, as these businesses have been less of a financial drag in the wake of solid results from its core business.
With these two technology behemoths continuing to innovate and dominating their respective businesses, it is conceivable that Alphabet and Apple trade the top spot over the next several years.
