Call it a five minutes of fame for internet search giant — Google (Alphabet) or whatever the heck you want to — but the reality is real — Apple is back at the top. Barely few days after Google’s parent company – Alphabet dethroned Cupertino based tech giant- Apple inc as the world’s most valuable listed company, Alphabet has fallen off the value ladder an is ones again trailing behind the iPhone maker. Alphabet’s accomplishments made it only the 12th company in recent history to get to that position, but it seems the mountain view based internet search giant wasn’t just ready to stay at a spot for too long or was just honestly bored.
After news of Amit Singhal, Google’s head of Search leaving the company late February hit the public, Alphabet’s stock came tumbling with a combined fall of 7% so far. “As I entered the fifteenth year of working at Google, I’ve been asking myself the question, ‘what would you want to do for the next fifteen?’ The answer has overwhelmingly been: give back to others. It has always been a priority for me to give back to people who are less fortunate, and make time for my family amidst competing work constraints — but on both fronts, I simply want to give and
do more,” Singhal wrote in a Google blog post on Wednesday. The tech wiz hinted he is leaving the company on Febraury 26, after sserving in the company when it was “a small startup” in 2000. “Now is a good time to make this important life change. Things are in amazing shape. Search is stronger than ever, and will only get better in the hands of an outstanding set of senior leaders who are already running the show day-to-day” singhal further explained his decision. Google engineering Vice President John Giann will likely take over from Singhal as he exits the technology empire.
The post made Apple, at least temporarily, once again the most valuable company in the world by market capitalisation. It’s a title the company held throughout 2012, but ceded after its stock went tumbling late in the year and through the first half of 2013. After finishing Tuesday at $531 billion, Alphabet went straight down and is now worth less than $500 billion. Meanwhile, Apple on the other hand rose 2% Wednesday and holding on to those gains till as of the time of writing this. Apple is now leading atop of the value charts with a significant difference, currently pegged at an average of $48 billion. Alphabet’s rise to the top was spurred by Apple’s stock falling a huge 25% due to widespread concerns about slowing sales of its flagship product – the iPhone. After a comprehensive corporate reorganization late last year, Alphabet disclosed that its revenue at Google’s core Internet businesses, like Google search, YouTube and Android, rose 14% last year from $65.67 billion to $ 74.54 billion. Expert prediction for Apple for 2016 has also generally been unfavorable, with most expecting a fair decline in iPhone sales due to saturated markets amid other issues.
The full market cap of Google’s parent company — Alphabet, is derived by adding the market value of the company’s Class A, B and C shares. The Class A and C
shares are publicly traded and no voting rights are tied to the C shares. The Class B
shares are those owned by company insiders that can be converted into A shares. Companies that have occupied the top spot in the past include General Electric ( GE ), ExxonMobil Corp , General Motors ( GM) and IBM ( IBM). IBM held the No. 1 spot for a long time in the 1980s, but recent technology companies that became the most valuable, such as Microsoft Corp in the 1990s and Cisco have given up the title rather too quickly.