Google's parent company, Alphabet announced its fourth quarter earnings report on Monday with a huge increase in its profit and boost the company as the most valuable company surpassing Apple. Based on the data collected, Alphabet is now worth around $568 billion compared to Apple which is $535 billion.

According to BBC, the latest announcement help to push its stock price as high as 9 percent during the after-hour trading to $770 per share. With $4.9 billion in profit for the fourth quarter, it seems that Google moves to separate itself by creating a parent company is a fruitful plan.

The Alphabet is currently handling business revolving innovation while Google will remain as its core web business including advertisement and other technology related products. Among the innovation handled by Alphabet is the self-driving cars and a new fiber internet technology.

Although it was recorded that Alphabet's bet on its innovative product had caused the company a total loss of $3.6 billion last year, thanks to the Google's advertising business, they manage to secure better profit.

Neil Doshi, managing director for Mizuho Securities said that "Two or three years ago mobile was a big headwind for Google. There were concerns that it [had] a negative impact on its desktop business, but as mobile takes over for more searches, mobile ads are becoming closer in value to the desktop ads."

Apple which has been holding the title since in 2010 after the company bet on the iPad and the latest iPhone technology manage to push the company valuation from $180 billion to more than $650 billion in September 2012 as reported by CNBC. However, the result was achieved during the late Steve Jobs was still the CEO of the company.

However, with the iPhone as Apple's main revenue which contributes to two-thirds of its main revenue, it is clear to see why Apple's valuation is slowly declining. The sale of the phone has been increasing at a slower rate while other products are plunging in sales.

Jan Dawson, a chief analyst at Jackdaw Research told USA Today that "The reality is that Apple is going through a period in its history where revenues are temporarily dipping, not going through some sort of terminal decline."

However, with just a small gap between the two companies, it is expected that Apple might take over the throne again soon. This is because the new iPhone 7 is expected to be released by the end of this year.