Google Alphabet Passes Apple To Become Most Valuable Traded U.S. Company

by Benson Agoha | Business

It is not the kind of news apple loyal lovers may expect, but Google Alphabeth, the parent of Company created by Google last year, effectively separating core google business from several other initiatives, described by the company as "Other bets".

Google Other Beths relates to companies whose products are still being seen as a gamble. These include the Google Glass - previously launched and later withdrawn from the mass market; Self-driving Cars - still being tested, without a definite launch date; Google's Glucose Monitoring Contact Lenses, Robotics research arm as well as London based Google Deep Mind.

In a report Tuesday, Reuters said investors are giving Alphabeth the thumbs-up for surging business as well as for transparency.

Google suffered losses from its other bets, but said surging advertising revenues from its core internet business - search engine and YouTube helped it to grow 8%.

On the other hand, recent reports said Apple's iPhone sales stalled globally, forcing down its share price.

"Alphabet will officially overtake Apple in market value if the two companies' shares open around current levels on Tuesday." Reuters reported early Tuesday.

Scott Fullman, chief strategist at Revere Securities Corp said: "This makes Alphabet an even stronger bellwether for investors to watch," adding "The company has been tracking very well given the volatility in the market, dominated by falling energy prices and weakness from China."

Today's report contrasts with a 2015 report during which Apple was credited with being worth more than $760 billion (£528 billion), fired ahead by its hot fasting iPhone series.

Alphabet shares which jumped 6 percent on Monday following strong quarterly earnings reports, made its combined share classes worth $554 billion (£385 billion), "compared with Apple, which had a value of about $534 billion (£371 billion).

But all fingers crossed, Apple just might still come crashing ahead of Google again.

(* With contribution from Reuters)