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Google just passed Apple to become the most valuable company in the world

Feb 2, 2016, 02:46 IST

Apple CEO Steve Jobs, left, and Google CEO Eric Schmidt, right, smile as they introduce the iPhone during Jobs' keynote address at MacWorld Conference & Expo in San Francisco, Tuesday, Jan. 9, 2007.AP/Paul Sakuma

Alphabet, Google's parent company, has overtaken Apple to become the most valuable company in the world.

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Alphabet closed Monday at $518 billion, but in after-hours trading on Monday, Alphabet spiked over 5% at one point following a strong earnings report, making Google worth roughly $544 billion. At that point, Apple's market capitalization stood at $534 billion.

As a whole, Alphabet posted total revenue of $21.32 billion in the fourth quarter.

Alphabet beat on both the top and the bottom line, posting earnings per share of $8.67, which beat analyst expectations of $8.09.

Alphabet's primary revenue-generating engine is Google, of course. During Monday's earnings call, Google CEO Sundar Pichai noted that seven Google consumer products have more than 1 billion monthly active users, including Gmail, Search, Android, Maps, Chrome, Youtube, and Google Play.

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But as quickly as Google can make money, parent company Alphabet can spend it. "Other Bets" revenue, which includes Google's long-shot projects like self-driving cars and internet balloons, posted an operating loss of $3.56 billion with only $448 million in revenue.

Wall Street liked Alphabet's earnings, spiking the stock over 8% in after-hours trading before settling down closer to 5%.

Of course, we'll see if Alphabet will officially claim the lead tomorrow morning, when the market opens.

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