Google's parent company, Alphabet, is encroaching on Apple's status as the most valuable company in the world, reports CNN. While Apple is currently on top, a surge in Alphabet shares today gave it a market valuation of $533.4 billion, briefly surpassing Apple's valuation of $532.7 billion on a 1 percent stock drop.
Alphabet shares dropped shortly after, leaving Apple at a higher valuation, but the numbers could shift again tomorrow following Alphabet's first financial earnings report this afternoon. Alphabet is expected to announce overall revenue growth of close to 15 percent with a 20 percent increase in earnings per share.
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Over the course of the last several months, Apple shares have fallen steadily, dropping its peak valuation of $740 billion to ~$540 billion. Despite record earnings for the first fiscal quarter of 2016, with revenue of $75.9 billion and net quarterly profit of $18.4 billion, Apple has not bounced back from rumors that the iPhone 6s and the iPhone 6s are not selling well and concerns that the company has reached "peak iPhone" with no replacement product on the horizon.
Apple is in for a rough second quarter as the company is expected to announce its first ever decline in iPhone sales and its first year-over-year revenue drop in thirteen years. Currency headwinds caused by a strong U.S. dollar are costing Apple a significant percent of its earnings compared to the year-ago quarter.
Update 1:05 PM: Alphabet is up another 8 percent in after hours trading following a strong earnings report, meaning Alphabet will almost certainly open trading tomorrow at a higher valuation than Apple.
Top Rated Comments
(View all)iPad Pro should have ran a tweaked version of OS X geared for touch.
iMac 4K should have came with an SSD.
Apple TV should have had 4K compatibility for use with home videos shot on iPhone 6S.
iPad Pro should have 128GB base storage, and have the 32GB model only sold as an enterprise model.
These are all things people seem to agree on, and there isn't much of an argument for Apple to have done this. Just start finishing your products before you release them Apple...
B) I'm glad two top tier tech companies are the biggest in the world. It was such a shame when the biggest companies were archaic oil dealers.
Good. Google actually tries to innovate. Apple continues to regurgitate.
Google shares what they're working on, Apple doesn't. Look at Google Glass - was that a successful product? No. If Apple had a product that flopped like that, there would be talk in this forum of firing Tim Cook.Macbook should have had two USB ports.
Good news: iOS is OS X geared for touch. Go back and watch the keynote where Steve Jobs introduced the iPhone.iPad Pro should have ran a tweaked version of OS X geared for touch.
iMac 4K should have came with an SSD.
Apple TV should have had 4K compatibility for use with home videos shot on iPhone 6S.
iPad Pro should have 128GB base storage, and have the 32GB model only sold as an enterprise model.
These are all things people seem to agree on, and there isn't much of an argument for Apple to have done this. Just start finishing your products before you release them Apple...