Alphabet

ALPHABET INC. - Mercy Jane P. Ballesteros-

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Google's Alphabet: Your Guide to 81 Parts

Google's parent company more profitable than Apple

Alphabet's Google Reports Rising Profits in Core Businesses

What is Alphabet, Google's new company?

As part of the change, the company that used to be called Google is going to become a new holding company called Alphabet.The URL for the new company is abc.xyzShareholders will get one Alphabet share for every Google share they previously owned.

The executives in charge of Alphabet will be the same execs in charge of Google today CEO Larry Page, PresidentSergey Brin, Executive Chairman Eric Schmidt, CFO Ruth Porat, and chief counsel David Drummond.

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Alphabet includes the following entities:A smaller company called Google, headed by CEO Sundar Pichai, that includes the company's core businesses. Those businesses: "search, ads, maps, apps, YouTube and Android and the related technical infrastructure."Other businesses, "such as Calico, Nest, and Fiber, as well as its investing arms, such as Google Ventures and Google Capital, and incubator projects, such as Google X," which "will be managed separately from the Google business."

How Alphabet became the biggest company in the world

Alphabet, the company formerly known as Google. In the past six months alone, since Google restructured to become Alphabet its cap has risen by $200bn (139bn), almost doubling its total value. Theres no breakout new hit to thank and no major victory in the legal, political or commercial realm. Its just solidly, steadily bringing in billions of dollars a year.

Thats all the more astonishing given that, in that period, Alphabets products have remained much the same as they always have been.

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Commercially, when we say Alphabet, we really mean Google. The old company still represents the vast majority of Alphabets revenues, and almost all of its major businesses (including search, maps, YouTube, advertising and Android) still sit under Google and its new chief executive, Sundar Pichai. The rest of Alphabet may represent the bets on the industries of the future but for today, its Google that pays the bills.

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The Google segments revenues topped $74.5bn in 2015 and it made profits of $23.4bn. The majority of the advertising revenue it gets still comes from its own websites: $13.037bn of it, to be exact.It shows how strong the foundations are in the house that Larry Page and Sergey Brin built. Search is still the jewel in Googles crown, still the thing it does best, and still an enormous money-spinner.

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Thats down to two main reasons, one heavily discussed, the other rarely noted, but both with their roots in the early days of Google.The company was founded in August 1998, and a month later had 10,000 searches a day. Six months after it was founded, it had 500,000; three years later, it had 150m. According to the most recent figures, it now receives around 3.5bn searches a day.

Googles search experience was astronomically better than any of the competition and it paid off. 12

But the other facet of Googles success came from something that was only realised once it had already achieved that dominance: there is nowhere more valuable to advertise than on a search results page. The realisation of the value of search is what led Google to so aggressively safeguard the key experience.

The homepage has survived almost 20 years, but while desktop search is still a huge money-spinner for the company, its also the past. The future of advertising is in two very different areas: mobile and video. And in two acquisitions a little more than a year apart, Google sorted out how it would deal with those trends.

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Google parent Alphabet passes Apple market cap at the open

Alphabet has a market cap of $547.1 billion, higher than Apple's $529.3 billion as of 9:45 a.m. ET.The last time Google was more valuable than Apple was was in February 2010, when both companies were worth less than $200 billion.Apple's main problem is its reliance on the iPhone, which now accounts for two-thirds of revenue.Meanwhile, Google is convincing investors that in the transition from Web to mobile it will maintain its dominance.

Shares of Alphabet opened nearly 3 percent higher Tuesday, pushing the technology giant's market capitalization past Apple to become the world's most valuable public company.

Apple's massive market cap is still trailed by Microsoft ($425.7 billion), Facebook ($326.2 billion) and Exxon Mobil ($310.1 billion) to round out the list of the world's five biggest companies.At the time, Apple had yet to release its first iPad, the newest iPhone on the market was the 3GS, and the Mac was the company's biggest product line, accounting for one-third of revenue. Steve Jobs was still at the helm.

Apple and Google actually flip-flopped multiple times between 2008 and early 2010, before Apple went on a historic tear, jumping from $180 billion in value to over $650 billion in September 2012. At that point, the two companies were separated by over $400 billion. In 2011, Apple passed Exxon to become the world's most valuable company.

It's hard to believe that Google was the more valuable company from the time of its IPO in 2004 until April 2008. Then iPhone madness began.

ccording to eMarketer, Google is poised to capture 32 percent of the mobile ad market this year and next, staying well ahead of Facebook, which is around 20 percent. The company generates so much profit from its digital ad business that it can invest in all sorts of potential growth areas, namely autonomous driving and extending life.

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Alphabet - owner of Google - takes top spot from Apple

It is the first time that Alphabet has separated out the results of its Google business - which includes the search engine and YouTube - from its "Other Bets" business, which includes more experimental ventures such as self-driving cars and internet balloon programs.On an annual basis, Alphabet made $16.3bn but the figures show that the "Other Bets" business lost $3.6bn during the period, while Google's operating income rose to $23.4bn, as online advertising increased.

The big gain for the company was advertising. All important paid-for clicks - where advertisers pay per person who clicks on the ad - were up 31% across the entire internet, and 40% on Google-owned sites. Alphabet's claiming of the most valuable company title has been seen by some as a passing of the technology baton.Apple became the United States' most valuable company in 2010, when it dislodged Microsoft. Microsoft in turn overtook IBM two decades earlier.

UK sales

In the UK, revenue rose 16% to $1.92bn in the fourth quarter. It is the only territory outside the US for which the company breaks down its figures because it is such a large part of the business.The company is currently at the centre of a tax row in the UK after it agreed to pay 130m in back taxes that stretch back to 2005. The agreement was seen by some as too lenient for the internet giant.

References Feb 2, 2016. Wall Street Journal. Youtube.com. Alphabet's Google Reports Rising Profits in Core Businesses https://www.youtube.com/watch?v=0fQmoFmnw1c Retrieved Date: February 17, 2016Feb 5, 2016. CSBN. Youtube.com. Google's parent company more profitable than Apple https://www.youtube.com/watch?v=wboiSmE-A4g&spfreload=10 Retrieved Date: February 17, 2016Aug. 10, 2015. Business Insider. Matt Rosoff. What is Alphabet, Google's new company? http://www.businessinsider.com/what-is-alphabet-googles-new-company-2015-8 Retrieved Date: February 17, 2016

References February 1, 2016. BBC. Alphabet - owner of Google - takes top spot from Apple http://www.bbc.com/news/business-35464599 Retrieved Date: February 17, 2016February 2,2016. The Guardian.com. Alex Hern. How Alphabet became the biggest company in the world. http://www.theguardian.com/technology/2016/feb/01/how-alphabet-made-google-biggest-company-in-the-world Retrieved Date: February 17, 2016Aug 13, 2015. Bloomberg Business. Youtube.com. Google's Alphabet: Your Guide to 81 Parts. https://www.youtube.com/watch?v=X4g1FZLJp3w Retrieved Date: February 17, 2016

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