Google’s parent Alphabet hits US$1 trillion market value, becoming the fourth US company to touch this record alongside fellow tech giants Apple, Microsoft and Amazon.
Alphabet Inc, the parent company of internet giant Google, has become the fourth US company to boast a market value of US$1 trillion. The company joined Microsoft, Amazon and Apple in crossing the threshold as its shares closed up 0.76% at $1,450.16 on the session.
Alphabet shares saw a small dip in October, following a quarterly update that missed expectations but quickly recouped the falls as the market sees the group’s long-term potential untouched. According to the calculations by Proactive Investors, the stock has risen by 17% since the October news, outpacing the S&P 500 index which only grew 6%.
Alphabet offers a wide range of consumer services, including a search engine, YouTube, Google Maps, Google Ads and Android applications. The firm became its own subsidiary in 2015 as a “collection of companies”, so that Google could focus on keeping its technology and strategy relevant.
Alphabet is now parent to a dozen companies such as self-driving car business Waymo and health care software company Verily. In November, Alphabet announced that it will buy wearable device maker Fitbit Inc for $2.1 billion, as it seeks to enter the fast-growing market for fitness trackers and smartwatches.
On 3 December, Alphabet announced that Larry Page and Sergey Brin will step down from their respective roles as chief executive and president of the tech firm. Sundar Pichai became the CEO of both Google and Alphabet with immediate effect. Sundar Pichai, Google’s boss since Alphabet’s creation in 2015, is now responsible and accountable for leading Google as well as managing Alphabet’s investment in the company’s portfolio of Other Bets.
Larry Page and Sergey Brin co-founded Google as university students in 1998. They will remain actively involved as Board members, shareholders and co-founders of Alphabet. As of April 2019, Larry Page held 26.1% of Alphabet’s share capital and Sergey Brin 25.25%.
Image: Google’s HQ in Dublin, Ireland / Stephen Bergin
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