The most valuable company in terms of market capitalization is Apple with a market cap of 523,90. Alphabet`s market cap is 508,76, which means there is only 15,14 that separates them, which means Alphabet can be the largest company very soon.
66% of Apple
s sales comes from iPhone and Apples new release for iPhone 7 is in September. That is a very long time to wait. Before that, the sales can slow down, and so can the stock. It can go in the other direction for Alphabet.
Alphabet will come out with a new report after the bell close today. Wall Street`s estimates for EPS is expected to come in at $8,17, with revenue of $16,9B.
Last summer, they changed the name to Alphabet Inc, but Google will continue as the company`s legacy business and include core properties such as search and advertising. Alphabet will continue to invest in self-driving cars, health care, Google-X and smart homes.
So, this will be the first quarter to see how both segments are doing it. Alphabet`s shares rose 46% last year after cost cutting initiatives and a lot of reorganizing. We will probably hear more about that later today.
Alphabet is focusing on innovation and growth and their search division has contributed to the recent robust growth. They introduced YouTube Red and will continue with acquisitions. They succeeded with their strategic mobile initiatives, so it should be a good quarter for Alphabet (GOOGL).
Alphabet can be the largest company very soon.
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