Google’s parent company, Alphabet, recently overtook Apple to claim the title of being called the world’s most valuable company. Alphabet’s reported Q4 2015 earnings caused enough excitement and positivity amongst investors and analysts for the company’s stock price to rise enough in after hours trading to propel the company to the top of the rich list. It seems that the excitement within Alphabet can best be described as short lived as the outfit’s stock price has fallen just 48 hours later, allowing Cupertino-based Apple Inc. to once again be officially recognized as the world’s most valuable company based on market capitalization.
After initially rising to upwards of $800, Alphabet’s stock took a small dive of approximately 4.93-percent to $726.95. That slight dive in stock price gave Alphabet a market capitalization of $499.94 billion. For the average consumer out there it’s madness to accept that more than $40 billion was wiped off the value of the company in a 48-hour period of time. At the same time, Apple’s stock value increased by 1.98-percent, trading at $96.35 at close, and giving the fruit company a market capitalization of $534.22 billion. Enough to catapult the company back to the top of the world’s most valuable company food chain.
It’s worth noting that Alphabet’s drop, and subsequent loss of market capitalization, isn’t directly attributed to any issues that the company is facing. Nor has it come on the back of any company statement that could be greeted with negativity by investors and analysts. The share value drop has been experienced by a number of companies in the technology sector, with a number of major companies all suffering similar market setbacks when trading closed yesterday leaving their financial performance lagging behind that of the previous day.
Being named as the world’s most valuable company is a title that Apple has had a lot of time to get used to. Tim Cook’s outfit originally took the title back in 2011 when it rose above Exonn Mobil. It’s largely been plain sailing at the top of that list until Alphabet’s strong performance recently. Apple may once again find itself named as the world’s most valuable company right now, but the likelihood is that both Apple and Alphabet will battle it out for that title with the position changing in the future depending on who posts the best results. Apple’s planned media event this coming March should introduce enough positivity to keep it at the top for the near future.