With the disclose of fourth quarter earnings, it became very clear that Apple is no longer the world’s most valuable company rather its Alphabet, Google’s parent company that captured that top position by kicking out Apple from that coveted place. While all of us have an idea that apple is always on the top position but a surge recently gave the Alphabet market share a price of $533.4 billion while Apple‘s share valuation is $532.7 billion (less by 1%).
However, the share price dropped for Alphabet shortly after it and Apple again gained the top position but this scenario might change again tomorrow. Alphabet will very soon declare the overall revenue growth that is approximately 14% with 20% growth in per share earnings.
Though Apple has set record earnings in the first fiscal quarter of 2016 with a revenue of $75.9 billion and net profit of $18.4 billion but they cannot deny the fact that the share is dropping steadily and it reached to $540 billion from $740 billion over time. Also their latest product iPhone 6S is not able to satisfy the users which is why Apple could not see a great sell of this flagship device.
The profit margin of Google was going down for the last few years and Wall Street was actually waiting to see the profit margin. In this quarter this big search engine company has witnessed an operating income of $6.7 billion with 32% margin while it was $5.6billion in the last year same quarter. So, there is great hike in the profit margin that made the competition more tough and it seems Alphabet will continue to start the trading at a higher valuation from now onwards.