Google holding company Alphabet Inc. is now the most valuable company in the world being worth $553 billion compared to Apple's $538 billion.
It must be noted that the two companies' operating systems and apps are in direct competition with each other and Apple is still in litigation with Samsung Electronics, the biggest Android smartphone maker.
On Monday, Alphabet shares rose 6 percent after reporting robust quarterly earnings after the bell, making its combined share classes worth $553 billion, compared with Apple, which had a value of about $538 billion. Last week, Apple shares plummeted after reporting the slowest-ever increase in iPhone shipments and forecasting its first revenue drop in thirteen years.
Alphabet's stock surged in the last year, helped by increasing sales of advertising on mobile devices, while Apple struggled due to signs of softening demand for iPhone, particularly in China, and the lack of another blockbuster product in its pipeline.
The latest progression in Alphabet's stock price began around July last year. Since then the company has restructured, forming a new holding company and splitting into two parts.
Alphabet shares are more relatively expensive than Apple's, trading around 38 times earnings for the last twelve months, compared to about 11 times for Apple. Alphabet pays no dividend, while Apple's dividend presently yields about 2 percent of the stock's value yearly.