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Shares in Google’s Parent Soar On Blockbuster Quarter

February 1, 2016

Fortune Global Forum 2015Fortune Global Forum 2015
Larry Page, CEO and Co-founder, Alphabet IncPhotograph by Stuart Isett—Fortune Global Forum

(Reuters) – Google parent Alphabet reported better-than-expected quarterly revenue on Monday, boosted by strong sales of advertising on mobile devices and YouTube.

Alphabet, announcing its first results under a new reporting structure aimed at improving transparency, said consolidated revenue jumped 17.8% to $21.33 billion in the fourth quarter ended Dec. 31, from $18.10 billion a year earlier.

Total operating losses on “Other Bets” – which includes “moonshots” such as self-driving cars, glucose-monitoring contact lenses and Internet balloons – increased to $3.57 billion in the 12 months ended Dec. 31.

Google’s shares rose 6.4% to $820 in after-hours trading on Monday, putting the company on track to overtake Apple Inc as the most valuable company in the United States when regular trading resumes on Tuesday.

Google’s advertising revenue increased nearly 17% to $19.08 billion, while the number of ads, or paid clicks, rose 31%, the company said.

Advertisers pay Google only if someone clicks on their ad.

Net income in the fourth quarter rose to $4.92 billion, or $7.06 per Class A and B share and Class C capital stock, from $4.68 billion, or $6.79 per share.

Excluding one-time items, Google earned $8.67 per share.

Analysts on average had expected a profit of $8.10 per share and revenue of $20.77 billion, according to Thomson Reuters I/B/E/S.

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Alphabet’s shares (GOOG) rose 9% in after hours trading Monday to $819.

Alphabet surpassed Apple (AAPL) as the most valuable company in the United States in after-hours trading on Monday, knocking the iPhone maker from the top spot that it has held for the better part of four years.

After the bell, Alphabet’s combined share classes were worth $568 billion, compared with Apple, which had a value of about $535 billion.