Updated 03:53 PM EST, Mon, Nov 23, 2020

Apple Loses Most Valuable US Company Name to Google [Details]

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For several years, Apple Inc has been consistent in being the most valuable company in the United States. However, as of after-hours trading on Monday, the company has been overturned by Alphabet Inc -- which, until lately, was known by everyone else as Google. CNBC noted that the last time Google was more valuable than Apple was in 2010, when both companies were not at the top, and were worth less than $200 billion.

Reuters mentioned that this change may mean the passing of the technology baton and taking it from Apple, which has held the top spot since 2010. Alphabet shares jumped on Monday following reports of strong quarterly earnings, compared to Apple, whose predicted sales decreased over the months.

Alphabet's powerhouse status surged in the last year, as sales and advertising on their mobile devices increased, while Apple has been struggling lately due to lesser demands for their signature phones in other areas of the world -- especially in China.

Scott Fullman, the Chief Strategist at the Revere Securities Corp said, "This makes Alphabet an even stronger bellwether for investors to watch. The company has been tracking very well given the volatility in the market, dominated by falling energy prices and weakness from China."

Compared to Apples dwindling stock prices, Alphabet's shares have significantly increased their value, trading around 38 times in the past year, compared to Apple's 11. Bloomberg Business noted that by changing its name and structure, the company's CEO, Larry Page, was able to put the focus on the web business, while putting more into new endeavors, such as artificial intelligence, cars, and health technology, among other things.

This move to the top spot makes Alphabet the 12th company recognized as the largest publicly traded name since 1928, with other past names, including General Electric, General Motors, and IBM.

Apple Insider noted that this change in business dynamic is Alphabet's "renaissance in growth" as their advertising division made "big gains" in the last few months, with the company's services division showing a lot more use among its users. On the other hand, Apple is losing ground as their iPhone and iPad sales continue declining. CNBC dded that unless Apple decides to compete with Alphabet's Android and lower the prices of their gadgets, investors are concerned that they Cupertino-based company will never recover.

However, some remain doubtful that Alphabet will stay at the top spot for very long. How long do you think the company will have a greater cap on Apple -- a month, a year or longer?

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