Alphabet stock, the artist formerly known as Google, shot up $50 per share to close above the $700 mark to imply a market capitalization of $450 billion. The reason for apparent investor jubilation is that Alphabet reported 13% growth in revenue over the past twelve months when it disclosed quarterly earnings on October 22nd. That growth is very impressive for a company of Alphabet’s size–it generated revenues of $66 billion last year, and this year’s figure should be in the $74-$77 billion range.
The current profits of $15.8 billion are way, way ahead of the $1.51 billion that Alphabet reported in profits ten years ago. It deserves credit for being the most dominant tech company during this time alongside Apple. It’s hard to create a moat in the online world where the barriers of factories and physical real estate are not present, but Alphabet has succeeded in doing so.