Alphabet Inc., the parent company of Google, has become more profitable than Apple, with a market cap of $547.1 billion. The company generates the vast majority of its revenue from Google’s core businesses, including search and advertising, while its other ventures, such as self-driving cars, operate at a loss. Alphabet's restructuring has significantly increased its value, showcasing the strength of its foundational companies.

1. ALPHABET INC.
- Mercy Jane P. Ballesteros-

2. Google's Alphabet: Your Guide to 81 Parts

3. Google's parent company more profitable
than Apple

4. Alphabet's Google Reports Rising Profits in
Core Businesses

5. What is Alphabet, Google's new
company?

6. 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.xyz
Shareholders will get one Alphabet share for every
Google share they previously owned.

7. 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."

8. How Alphabet became the biggest
company in the world

9. 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.
There’s no breakout new hit to thank and no major victory
in the legal, political or commercial realm. It’s just solidly,
steadily bringing in billions of dollars a year.

10. Commercially, when we say Alphabet, we really mean
Google.
The old company still represents the vast majority of
Alphabet’s 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, it’s Google that pays
the bills.

11. The Google segment’s 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
Google’s crown, still the thing it does best, and still an
enormous money-spinner.

12.  That’s 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.

13. But the other facet of Google’s 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.

14. Google parent Alphabet passes Apple
market cap at the open

15. 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.

16. Alphabet - owner of Google - takes top spot
from Apple

17. 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.

18.  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.

19. UK sales

20.  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.

21. 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, 2016

 Feb 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, 2016

 Aug. 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

22. 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, 2016

 February 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,
2016

 Aug 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

23. THANK YOU! 