Google Stock Forecast: Alphabet passed Apple as the most valued company

Google Stock Forecast

published Feb 2nd, 2016

After an amazing report of Alphabet, Apple was displaced by Alphabet as the most valued company in the world. Yesterday, Alphabet reported revenues and earnings better than expected by analysts and its shares went up strongly.

Google Stock Forecast

The company smashed expectations on both ends, bringing in $21.3 billion in revenue and earnings of $8.67 per share. Analysts were expecting earnings of $8.09 on $20.8 billion in revenue. And with that, Alphabet became the most valuable publicly-traded company in the world, coming in at a market cap $558 billion after jumping about 8% after the company reported its fourth-quarter earnings, and passing Apple, which sits at a market cap of $535 billion. Remember that Apple reported bad numbers last week and its shares fell down. Yesterday, Apple shares lost another 0.95%

There’s a clear narrative here. Alphabet, a software company with a few extra hardware bets, shares have dramatically outperformed those of Apple, a hardware company with a few extra software bets.

Google´s core business continue to grow as well. As to users, the company said that active users of Gmail grew to 1 billion. Talking about Google´s core advertising business, cost per click fell 13% year-over-year, while paid clicks increased 31% in the same period. This has been a trend for Google, as more activity shifts to mobile devices, the value of each advertisement click tends to go down.

Google, too, is still not immune to what’s happening with foreign exchange rates and the general global economy. Revenue was up 18% year-over year, though in constant currency it would have risen $24%. Apple, for example, said there was a difference in $5 billion in revenue if not for foreign exchange rates, and for Google that represents about $1 billion in revenue.

Algorithmic Recommendation

I Know First provides daily investment foresight, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database and utilizes it to predict the flow of money across 3,000 markets.

The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

I Know First’s algorithm was able to correctly predict the behavior of GOOG’s stock price in the past. Indeed, I Know First wrote few days ago an article about Alphabet talking about its new products, researches and the potential of the company. We recommended buying Alphabet for different terms, as you can see below.