Published on : Jul 24, 2018
Google was worth more than US$800 billion in the past; it might still be shy of Apple’s progress. However, the tech giant has already entered a race between few companies to reach revenue worth US$1 trillion.
More Insights about Google’s Roadmap to Become a Trillion Company
In the second quarter of this year, Alphabet, Google’s parent company brought in US$32.66 billion, thus outperforming its own market expectations. This indicates a 26% increase year-over-year, and is a faster rate of increase witnessed by the company in the same quarter last year. Thus, such a performance definitely indicates that Google continues to earn revenue through its advertising business, even though its cost-per-click rate has declined.
The fact that Alphabet shares spiked up an additional 5 percent, making its valuation about pretty much similar to that of Amazon, though, falling short of Apple’s performance. However, it hasn’t been long ago when Apple hit a $900 billion market cap, thus fueling speculations about the company being a contender to hit $1 trillion. The bottom line is that Google’s advertising business continues to be healthy and growing. And even though the company has been imposed with a massive fine by the EU, this hasn’t rang alarm bells for its shares in the States. The recent growth is proof that Alphabet will continue to grow over time.
Google also been earning revenue from other sources such as development of cloud systems, which made it earn US$4.43 billion. As a corollary to this fact, the company’s advertising revenue grew at about 24%, whereas, the other revenue growth was clocked at 37% year-over-year. These patterns are highly similar to the ones showed by Amazon. From an overall perspective, it surely won’t be easy for Google to reach the fabled US$1 trillion market, but the dream is definitely achievable.