Alphabet Apple-Google dethrones on Wall Street – Les Echos

“Google is on the way / To become the first company / Valued one trillion. “It is with this enthusiastic haiku that ended the note a broker BGC Partners analyst Thursday. Alphabet, the holding company umbrella Google, is not even a billion billion, but it has just reached a major milestone: dethrone Apple on Wall Street

Market capitalization. the Mountain View company has exceeded the Cupertino giant Monday, just an hour after qu’Alphabet posted very good results for the 4th quarter. It reached $ 555 billion, while that Apple is about 534 billion.

For the first time since the creation of Alphabet last summer, the giant Silicon Valley has separately presented the results of its two entities – one hand, Google, bringing together the search engine, the Android operating system, advertising or YouTube, and on the other, “other paris “ranging from the connected lens projects, driverless cars through the company Google Ventures venture capital. “By isolating the Google results, investors have found that the Alphabet core business was still healthier than they thought,” says Jan Dawson, an analyst at Jackdaw Research.

The “moonshots” unprofitable

The downside is that this choice also forced Alphabet to reveal how the “moonshots” were, themselves, not profitable: they lost $ 3.6 billion in 2015. Only in Alphabet Verily, its division into the life sciences, the connected thermostats Nest and Fiber, its fiber has deployed in three US cities, begin to generate revenue – sales of all “paris” was 448 million in 2015

Low performance easily forgiven by Wall Street to the rest of the results, which exceeded analysts’ forecasts. The group’s turnover has increased from 24% last quarter, reaching 21.3 billion dollars. Profits have meanwhile reached 4.9 billion dollars against 4.7 billion in the same period last year.

“Our growth is driven by mobile search, YouTube and programmatic advertising,” said Ruth Porat, at the presentation of results. The price paid by advertisers for each click continues to decline – from 13% last quarter – but the increase in the volume of commercials viewed on mobile than offset this decline. The number of times where advertisers have paid has increased by 31% last quarter, compared to last year

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