Alphabet benefit sends monitoring actions; Apple surpasses in value

googleAlphabet Inc easily exceed forecasts quarterly earnings on Wall Street on Monday, helped by strong sales of mobile advertising, sending shares of Google matrix superior in after-hours trading to surpass Apple as the most valuable company in the United United.
For the first time, the company unveiled profitability Google search engine and other online services, and how much is being spent on ambitious technology projects, such as self-driving cars.
The numbers been made by investors, who saw room for growth in the traditional business of Google, and relieved to see that spending on new projects called “Other Markets” was not as luxurious as some feared felt.
“Interestingly enough, 80 percent of YouTube views come from outside the United States. I do not think it would be so high,” said Kevin Kelly, managing partner of Recon capital. “This shows that the value of YouTube can still be removed,” he said.
The operating profit margin for Google unit was 31.9 percent in the last quarter, compared with 25 percent for the alphabet.
Alphabet spent $ 869 million in capital expenditures for the other bets in 2015, up from $ 501 million in 2014. There has been no projections about if or when those bets cumulatively would become profitable.
“While the core business continues to perform well with revenues … accelerated investment in these businesses can continue,” said Ronald Josey of JMP Securities.
The company said that consolidated revenues increased 17.8 percent to $ 21.33 billion in the fourth quarter ended Dec. 31, from $ 18.10 billion a year earlier. Analysts had expected $ 20.77 billion, according to Thomson Reuters I / B / E / S.
Revenues for other bets was $ 151 million, up 29.8 percent from $ 106 million in the same quarter last year, mainly from his unit Intelligent Surveillance home Nido, Google Fiber, which offers Internet access high-speed business and a life sciences.
Adjusted earnings per share $ 8.67 comfortably beat average analyst estimate of $ 8.10 per share.
In a call with analysts, Chief Financial Officer Ruth Porat attributed the strong earnings to “the increased use of mobile search for consumers” and “continuous pulse” on YouTube and program advertising, referring to the automatic purchase announcements.
Kelly said Recon equity would not be surprised that YouTube saw an increase in advertising revenues increased beyond 17 percent saw in fiscal 2015.
Total operating losses on the other bets – including contact lenses glucose monitoring Internet and balloons – rose to $ 3.57 billion in the 12 months ended Dec. 31, and $ 1.2 billion in the fourth trimester.
The unit has its Google Internet and related businesses, such as search, ads, maps, hardware products YouTube and Android, as well as their laptops inexpensive Chromebook.
Google CEO Sundar Pichai said in the call that crossed its Gmail service billion monthly active users last quarter, joining the search, Android, Maps, Chrome, YouTube and Google Play in surpassing that mark.
It also promotes the performance of the company during the holiday shopping season, saying the video program prints doubled compared to last season, and that 60 percent of them came from mobile devices.
But Porat, without providing figures, said the company plans to accelerate capital expenditures in 2016 compared to the previous year.
Google shares rose nearly 5 percent in after-hours trading. classes combined actions of the alphabet were worth $ 549 million dollars, compared with Apple, which had a value of approximately $ 534 million dollars.
Alphabet officially surpass Apple in market value if the shares of both companies open around current levels on Tuesday.
advertising revenue of Google rose nearly 17 percent to $ 19.08 billion, while the number of ads or paid clicks increased 31 percent, the company said. Analysts had expected paid clicks to increase by 21.8 percent.
Advertisers pay Google only when someone clicks on your ad.
Net income for the fourth quarter rose to $ 4.92 billion, or $ 7.06 per Class A share and B and Class C share capital, from $ 4.68 billion, or $ 6.79 per share.
$ 8.67 Adjusted earnings per share excluding certain items at once.