Google-parent Alphabet now worth $1 trillion

Company reaches four comma club thanks to cloud revenue and recent leadership shakeup

Google's parent company Alphabet has become the fourth US tech company to reach a market value of $1 trillion (£765 billion), ending trading at $1,451.70 per share on Thursday.

It will hold a quarterly conference to discuss Q4 and 2019 financial results on 3 February but Wall Street Analysts are expecting it to report revenue of $46.9 billion - up 20% year-on-year.

Advertisement - Article continues below

Alphabet is now part of a US tech elite with AppleAmazon and Microsoft all having reached the $1 trillion market cap over the past two years. The iPhone maker was the first to surpass the mark in August 2018 with Amazon hitting it a month later. Microsoft was the third company, doing so in April 2019.

Like Amazon and Microsoft, revenues from its cloud ventures are believed to have heavily contributed to Alphabet's overall growth, with the Google Cloud Platform doubling it's revenue run rate to £2 billion per quarter between February 2018 and July 2019, according to CNBC.

Cloud, Google's Play app store and Google's hardware division have all been key drivers for the company, according to its earnings report. In Q3 of 2019, revenue from these segments of the business increase 39% year-on-year.

Sundar Pichai's recent promotion to CEO of Alphabet has also helped to increase optimism among stockholders, according to Pivotal Research Group analyst Michael Levine.

Advertisement - Article continues below

"We are incrementally more constructive about what we perceive as multiple ways to get paid under the recently appointed Pichai regime," Levine wrote, as reported by Markets Insider. His evaluation is reportedly based on an estimate of Alphabet's 2021 EBITDA (earnings before interest, tax, depreciation and amortization).

Pichai took over as CEO of both Alphabet and Google after co-founders Larry Page and Sergey Brin stepped down in December. The change of leadership offers "the most optionality for multiple expansion for the stock we have seen in years," according to Levine, who also sighted Thomas Kurian's helm of Google's cloud business as a positive sign.

Featured Resources

The ultimate law enforcement agency guide to going mobile

Best practices for implementing a mobile device program

Free download

The business value of Red Hat OpenShift

Platform cost savings, ROI, and the challenges and opportunities of Red Hat OpenShift

Free download

Managing security and risk across the IT supply chain: A practical approach

Best practices for IT supply chain security

Free download

Digital remote monitoring and dispatch services’ impact on edge computing and data centres

Seven trends redefining remote monitoring and field service dispatch service requirements

Free download
Advertisement

Most Popular

Best Linux distros 2021
operating systems

Best Linux distros 2021

11 Oct 2021
Apple MacBook Pro 15in vs Dell XPS 15: Clash of the titans
Laptops

Apple MacBook Pro 15in vs Dell XPS 15: Clash of the titans

11 Oct 2021
HPE wins networking contract with Birmingham 2022 Commonwealth Games
Network & Internet

HPE wins networking contract with Birmingham 2022 Commonwealth Games

15 Oct 2021