“Alphabet is scheduled to report fourth-quarter results after the close of trading Monday, and the resulting stock action could vault its market cap over Apple’s,” Jessica Guynn reports for USA Today.
“The Google parent company (GOOGL) is expected to earn $8.09 a share — excluding certain expenses — in the quarter, according to S&P Capital IQ. Alphabet earned $6.88 a share a year ago,” Guynn reports. “Alphabet is expected to generate revenue of $20.76 billion, up from $18.1 billion a year ago, according to S&P Capital IQ. Alphabet for the first time will disclose revenue, operating income and other key metrics for its main Google business separately from its “other bets” going back to 2013.”
“SunTrust Robinson Humphrey analyst Robert Peck says he expects Alphabet to report ‘strong’ fourth-quarter results but says the results will be ‘overshadowed’ by investor focus on these “incremental disclosures,'” Guynn reports. “A year ago, Apple had a market cap of $643 billion, almost twice Google’s $361 billion. ‘With a combination of a) potential for accelerating revenue growth, b) sustained expense control, and c) a capital return to shareholders via a share repurchase program, we continue to state our view that Alphabet is positioned to be the first company on a U.S. listed exchange to be worth $1 trillion, although we expect it may take many years,’ BGC Financial analyst Colin Gillis wrote in a research report.”
UPDATE: 4:19pm ET: Alphabet Inc. surpasses Apple, now the world’s most valuable company
Full article here.
MacDailyNews Take: While “most valuable company” is a nice title to have, “maker of the best products and services” is really Apple’s goal, not to have the higher result of shares outstanding multiplied by share price. If losing this symbolic crown – to Google, no less – makes Apple redouble their efforts to delight customers with excellence, we welcome the coronation wholeheartedly.
Alphabet Inc. is close to snatching Apple’s crown as the world’s most valuable company – February 1, 2016
Apple would be worth $1 trillion if market valued it like Steve Jobs-run company – January 4, 2016
Analyst: How Apple’s market value hits $1 trillion in 2016 – November 10, 2015
Analyst: Apple at $1 trillion in a year – May 11, 2015
Apple regains ‘World’s Most Valuable Company’ crown – August 1, 2013
Apple overtakes Exxon Mobil as world’s most valuable company – August 9, 2011