MOUNTAIN VIEW, DPA – Alphabet, the parent company of search giant Google, has surpassed retail giant Amazon on a market-capitalisation basis.
Last Friday, Amazon closed at $US1.616 trillion ($A2.084 trillion) at the bell, Google’s market capitalisation was $US1.622 trillion ($A2.092 trillion). This makes Alphabet the third-most valuable company in the US market after Apple and Microsoft.
While Amazon is $US1.613 trillion) ($A2.080 trillion) at the bell, Google’s market capitalisation is $US1.632 trillion ($A2.105 trillion) as of Monday.
Apple leads the way with $US2.101 trillion) ($A2.710 trillion), followed by Microsoft’s at $US1.912 trillion) ($A2.466 trillion), with the Windows maker set to become the second US company after Apple to breach the $US2 trillion) ($A2.6 trillion)mark.
This is the first time Alphabet has managed to surpass Amazon on a market cap basis in 16 months.
Created in 2015, Alphabet is essentially a holding company for Google, which generates most of its revenue and profit.
Although Google has invested in different areas of technology, including mobile phones, artificial intelligence, self-driving cars, and health technology, its key money-generating business continues to be online advertising, driven by its dominance in the search industry.
For the recent first quarter, the company reported revenue growth of 34 per cent to $US55.31 billion ($A71.33 billion), of which advertising revenues were $US44.68 billion ($A57.62 billion). Google has been the market leader in online advertising for well over a decade.
Moving ahead, Alphabet CEO Sundar Pichai said that the company would continue to focus on search engines.
“For me, our ultimate moonshot is still Search. I know people would be surprised to hear that 20 years in. Search works very well, but because I’m working on Search, I see all the limitations.
“Even today, when people type in a complex query, we’re looking at keywords trying to match it. We still have a long way to go to actually understand what the user’s intent is, the context, where they are coming from, and giving the best answer. So that is still the moonshot,” Pichai told Yahoo Finance in an exclusive interview.