Google Doubles its Profits 203
WinEveryGame writes "Google just announced a very strong quarter. The internet search engine said it had net income of $721m, or $2.33 per diluted share, up from $343m a year earlier. Wall Street had expected earnings of $1.94 per share. Earlier this week Yahoo had announced lower than expected earnings."
Yawho? (Score:4, Funny)
The value of engineers (Score:5, Insightful)
Seriously, it's nice to see a company that values its engineers doing so well.
Is it? (Score:4, Insightful)
or is the value of a natural monopoly in a truely open market as opposed to a tied monopoly in closed market such as the MS's?
Do not get me wrong. Google's engineering is what got them to this size. After all, Alta Vista, Yahoo and MS held 95% of the market when Google started. It is Googles superior ideas that enabled them to beat these other companies.
Re:Is it? (Score:5, Informative)
Reading comprehension 101: Google's engineers are valuable != Google values its engineers.
GP used the later, you understood the former, they have fairly different meanings.
Re:Is it? (Score:3, Insightful)
Call it cool if you like. They were simply one of the most advanced tech firms going and
Re:Is it? (Score:2)
I switched because it was a clean, no frills search engine.
Now google is just rife with Link Farms, Google Spam, Usenet clone sites, and sites that replicate themselves across multiple domains just to get higher page rankings.
If it wasn't for usenet search I'd have switched long ago.
Yahoo = adserver and other problems (Score:2, Insightful)
I had a yahoo webmail account, the new webmail beta needs new windows or mac, since i have neither webmail beta is a no go. Explain to me why webmail needs windows or mac binaries - spyware ?
Geocities trashed my webspace too after a couple of years no explaination about that either
What can we learn from yahoo ?
Re:Yahoo = adserver and other problems (Score:2)
chairs.... (Score:4, Funny)
I wonder... (Score:5, Interesting)
So, Microsoft still have a far greater net income than Google. Still, Google is rising fast. Will we someday see Google's net income overtake that of Microsoft, I wonder?
Re:I wonder... (Score:4, Funny)
Re:I wonder... (Score:2)
Google on the other hand actually have to compete to get paid.
Re:I wonder... (Score:2)
Compete with whom? Nobody has a search engine that's nearly as popular as Google. And if you want to buy cheap pay-per-click ads, Google is your only serious option.
Which is not to say that Google doesn't deserve its success. They didn't blunder into their main business, the way Microsoft did. Their search engine succeeded because it was designed to keep working as the Internet grew. And althought they sort of blundered into the ad business, they didn't make the kind of stupid mistakes MS made when it blu
Re:I wonder... (Score:2)
Re:I wonder... (Score:3, Insightful)
Re:Sadly... (Score:2, Troll)
Keyword: "Might"
Google could be all the things you said, but at least it gets the job done. Their search engine works. Their tools work. And I definitely can choose to use Google or not. Not many people can say the same about Microsoft products.
Re:Sadly... (Score:2)
What? Have you used it lately?
Link farms, usenet dumps, and useless google spam. It works okay, but there's gotta be some innovation soon...
Re:Sadly... (Score:2)
I do agree that there should be some innovation thought.
Re:Sadly... (Score:2)
Google's Bad Business Model (Score:5, Insightful)
Re:Google's Bad Business Model (Score:5, Funny)
Re:Google's Bad Business Model (Score:5, Funny)
Are you kidding? Have you even been to the Google Store [google-store.com]?! They do t-shirts, mugs - heck they even sell Lava Lamps! I'd like to see the adblocker that can block those babies...
Re:Google's Bad Business Model (Score:3)
At this time, MS is blocked by the feds and europe from doing what you suggest.
Second, they are in the process of diversifing right now.
Re:Google's Bad Business Model (Score:2)
Re:Google's Bad Business Model (Score:4, Interesting)
They have been floundering a lot lately, it's a mystery to me why they are so keen on getting into the search and advertising business at all. Who knows what makes Ms tick anymore. As far I can see they gone insane.
Re:Google's Bad Business Model (Score:2)
Pro: f**king kill off Google
Con: lose potential future ad revenue
Tough choice?
Even if you look at it rationally, it makes sense to do this. With Google dead, Microsoft lose a lot of risk to their existing revenue streams.
Re:Google's Bad Business Model (Score:2)
Ads aren't going anywhere. It is an industry unto itself. Saying google only has one revenue stream in ads is like saying Microsoft only has one revenue stream in software.
721 Million dollars? (Score:4, Insightful)
Seriously though your "possible situation" is 100% laughable. If MS released such a browser it would take a long time to seriously penetrate the market and there would be strong resistance not just from Google. If the browser won't show ads then 99% of sites out there would refuse to serve it content.
Google will certainly face challenges but to suggest that adwords revenue will simply disappear is absurd.
Re: (Score:3, Insightful)
it's all about infrastructure (Score:5, Interesting)
google is in the process of widely diversifying, and even if microsoft DID roll out a universal adblocker that was installed by default, I can envision several scenarios that google adwords infrastructure would still be useful for. how about when google unveils their free natiowide wifi metropolitan internet access.. of course it's free in exchange for using Gbrowser with AdViewing enabled.
I use gmaps [google.com] on my BlackBerry8700 all the time.. google's success is all about creating functional/useful utilities (email, mapping, search engine, blogger, gcheckout, whatever) and then stuffing ads in there. The fundamental question is not whether MS can block them, it's whether ads can be profitable, and I believe the answer is yes.
Re:it's all about infrastructure (Score:2)
Re:Google's Bad Business Model (Score:2)
Re:Google's Bad Business Model (Score:4, Insightful)
Re:Google's Bad Business Model (Score:2)
Re:Google's Bad Business Model (Score:2, Insightful)
1) no. it doesnt because no, thye dont. What about the new google payment system? What about the google-store.com that was mentioned already (not that i think that is a huge revenue turner)? That is not to mention all the free shit they give away that they could charge for. There's gold in them there hills.
2) Even if it was, tons of companies only sell one product. As long as the
Re:Google's Bad Business Model (Score:2)
Re:Google's Bad Business Model (Score:2)
Re:Google's Bad Business Model (Score:2)
Re:Google's Bad Business Model (Score:2)
Re:Google's Bad Business Model (Score:3, Insightful)
Pummeled into the ground by content providers. (Score:2)
A lot of this (Score:5, Interesting)
Re:A lot of this (Score:2)
pleonasm [reference.com]
Re:A lot of this (Score:2)
I'm curious where you got that information from. I browed through Yahoo finance quickly and didn't see that explained anywhere. You'd think Yahoo at least would have that kind of information ;)
Google is a verb now (Score:5, Funny)
Does somebody else find it funny, how the web sites have become verbs. Look at the button 'Google Slashdot'. Imagine 'Slashdot Google' or 'Slashdot University of California' buttons to kill the web sites.
'Slashdot' is already a verb. (Score:2)
'Slashdotted' is a very common term and is used frequently. Same with 'dug', although 'dug of course was always a verb
Re:Google is a verb now (Score:2)
Very appropos. If Slashdot were a university, it would definitely be in California.
Ba-DUM-bum-CCCCHHHHH!!!!
Value for money (Score:3, Interesting)
Yep, these Internet stocks sure are amazing value for money.
Simon hibbs
Re:Value for money (Score:2)
Re:Value for money (Score:2, Interesting)
Totally agree with you there that Google will continue to grow.
Acutally I don't see no reason why Google shoulde become as big as Microsoft (no, just as big, not the NEXT Microsoft), Currently Google has the a revenue that's about 1/6 of Microsofts and a market value that's roughly half. Profit margin looks good as well even if it's 3/4 of Microsoft. On the other hand O think Google stands a better chance of continued
Re:Value for money (Score:2, Insightful)
> investment so at this rate it will take about 166 years to get your investment back in earned
> value.
Er..you own the share too, so you'd have $389.33. Then there's dividends - many people own shares in companies that have negligable growth for years, purely because the dividends return more money than they'd get as interest from a bank.
Re:Value for money (Score:2)
The comment is about growth and return on investment, not on sum capital. You can put money into almost any stock and get somewhere near 100% out if you look at it your way; but what people are interested in is the ± value that affects the 100%.
Re:Value for money (Score:2)
The comment should have been about growth and return on investment. The comment actually was:
which is a comment about sum capital. The correct statement would have been:
It will take about 166 years to double your money.
(Ignoring for the moment the fact that the number is wrong, as others have pointed out, and that it fails to account for the possibility of compound
Re:Value for money (Score:2)
Re:Value for money (Score:5, Informative)
The earnings does magically not get added to the share price, so you still have only $387, UNLESS the share price increases OR the company pays the full earnings out as dividends (in which case you'd have to subtract tax on it anyway, so your net return would be even lower than 0.6%, the same would apply if the share price increase and you sell).
Most tech companies, though, never pay dividends (and if they do, it will certainly never be more than portion of their earnings - and so in this case 0.6% is the upper limit) - people speculate in continued share price growth.
So if you hold the share the maximum return is equal to the earnings per share. In Google's case this is far below what you'd get at far lower risk elsewhere (case in point: I get around 5% on my UK savings account and short term bonds)
Of course, if you sell the share you may or may not make money from fluctuations in the share price which may make it a worthwhile investment.
Grossly simplified, people look at the earnings per share because it is one of many measures of whether the share is cheap or expensive. A high earnings per share (in percent of share price) means there is a higher likelihood of continued share price growth (but note that many other factors will also play in). A low earnings per share in percent of share price means that continued share price growt is unlikely unless the market believes that earnings will continue to grow rapidly to catch up with the share price increases.
Re:Value for money (Score:5, Informative)
Google is quickly becoming a cash cow. They have $9 billion in cash right now. Microsoft has around $30 billion. That is a truly incredible comparison, given Google's relative youth.
It's an expensive stock, but hardly as mis-priced as you seem to think.
Re:Value for money (Score:2, Interesting)
Their share price still seems horribly overblown. Yes I know they're aprofitable business, as I said in an earlier reply, none of this is realy a probelm for them as an operating company. They have plenty of cash and are very profitable, but their shares simply are not worth half what they currently stand at. The problem with cash though is that it's not earning anything (much), and any investment you do make with it has to earn at least as much as your current bus
Re:Value for money (Score:2)
In which case your current $385 share is looking like a fantastic investment.
Of course it is very unlikely they will maintain 100% profit growth for 5 years straight but you get the idea.
Re:Value for money (Score:4, Interesting)
However, pricing on tech stocks (in particular) has always been more about capitalizing on fear, greed, and hype as they pump up and drag down the stock price than about any sort of reasonable analysis. Everyone knows that everyone else is irrational (and everyone knows that everyone knows, etc.), so it's quite difficult to assign any sort of "value" to normal stocks, let alone public sweethearts like Google. You're just irrationally speculating on other people's irrationality in the hopes that it's the most rational move to make. You'll probably recall that before the IPO a lot of people were screaming that $100/share was way too high for a company with so little potential for further growth. It appears they were wrong, clearly. Is $400 too high now? Who knows...all I know is I don't have the money to be playing these kinds of games with it!
Besides, how many stock traders do you know that got rich sitting on a basket of stocks and watching the dividends trickle in?
Re:Value for money (Score:2)
Warren Buffett? But he's only the second richest person in the world.
Re:Value for money (Score:2)
Ah yes. But on the same note, how many traders do you know that got caught up in the heydays of the late 90s, and bought into some dot-com stars and ended up broke? There's something to be said for value investing [wikipedia.org]. Might not make you rich (though Buffet et. al did quite well with it) overnight, but IMO it's a much better long-term strategy.
Re:Value for money (Score:2)
If that is true, however, it essentially makes google stocks valuable only in a speculative sense, and it is unlikely that they will maintain the incredibly high cost per share.
Re:Value for money (Score:2)
My google adwords (Score:5, Interesting)
Another thing (Score:2, Insightful)
But please, none of this "Logo Toilet Paper to replace Charmin at the Googleplex" news. I find slash
You have strange demands. (Score:2)
Understand?
Re:Another thing (Score:2)
Google Operating System (Score:4, Interesting)
Re:Google Operating System (Score:5, Funny)
People said the same thing about Microsoft.
Re:Google Operating System (Score:2)
Re:Google Operating System (Score:2)
3? Just of the top of myhead
Outside this, there is a looong list of fringe OS, like HURD, plan9 and friends.
If by "really" you mean "has to run on a standard PC for less than 1000", at least Linux, BSD, the max thingy, Solaris 10 and windows qualify.
Re:Google Operating System (Score:2)
The only players in the desktop market are Windows, Apple and Linux (in all its flavours, mostly Red Hat, SuSe and the latest fashion one,which last year was Gentoo, this year is Ubuntu). All the rest are fringe OSes on this area.
And of course an hypotetical GoogleOS makes sens only in a desktop, so don;t drag all the server share other OSes have.
Re:Google Operating System (Score:2)
Lets not forget that Google is essentially an advertising company. I, for one, would not use an Adsense laden OS even if it was free.
Re:Google Operating System (Score:2)
Bad analogy
The extra money probably came from (Score:4, Funny)
Will Goolge eclipse Microsoft? (Score:3, Interesting)
On the other hand, I was fairly late to realizing how sustainable Microsoft's advantage would prove, back in my stock analyst days, so do consider the source
Clickity click, Google wins! (Score:3, Interesting)
Google ... and beta (Score:2, Funny)
Everything that comes out of any company is now branded as 'Beta' Software / websites. The new Microsoft Live [live.com] crap, Yahoo is branding their crap as Beta... I'm sick of it.
Now, perhaps they could hire Tom Cruise to utilize his witchcraft [google.ca] to somehow get Beta as a trademark -- then they could lay on the royalty fee's on any company using it for commerical use -- I'm sure that would quadruple their profits!
By
Holding breath., (Score:2, Insightful)
Re:Holding breath., (Score:2)
Re:Holding breath., (Score:2)
I'm glad you didn't asphyxiate yourself today!
paul graham quote (Score:2)
Microsoft is scared of Google because unlike them, google built up it's current powerbase through being better then everyone else, not through rushing to, and maintaining, a manopoly.
Of the two, Google's business model is the most stable.
Microsoft missed out on search completelly. They dislike google for having the market share they should 'rightly' have. However, if Microsofts vision was so good, why did MSN f
Happy for Google (Score:2)
I can think of many things that Google has done:
a search engine that outperforms all others.
financial support for firefox
google earth
gmail (webmail that doesn't suck)
picassa
google maps
google summer of code supporting my favorite OSS projects
google calendar
kicking Microsoft's
I am hoping google in the next year will come out with more products, support more OSS, and do even greater things. Oh and
Negative tint (Score:2)
Yahoo! needs serious work... (Score:2)
I've been a long-time fan (and a stock-holder) of the company. Their software-quality has slipped noticably during the years. Their web-pages contain horribly broken HTML at times, with the bug existing for many months until it finaly goes away and the same browser no longer has a problem.
Their "message boards" (attached to each article) are some times either completely inaccessible, or have features missing — the "recommendations", for example, were broken for a couple of weeks recently. Someone mu
I, for one,... (Score:2)
Its the results with ADS (Score:2)
Stuffed so bad, you really have to figure it out if you are clicking on an ad or an other link.
Actually most of the pages that come up are teh definition of "excessive advertising", and supposedly google policy forbids that for adsense and adwords clients.... but they do not seem to enforce it too much
oh well, i am using a lot of yahoo, and sometimes even ms
Re:Am I missing something? (Score:3, Interesting)
No.
Re:Am I missing something? (Score:4, Interesting)
Re:Am I missing something? (Score:3, Funny)
Re:Am I missing something? (Score:2, Interesting)
Re:Am I missing something? (Score:2)
It's not about what you get from the dividends. It's about how much the stock goes up in value and the capital gains that will result from selling the stock at a higher price.
Re:Am I missing something? (Score:2)
Research has shown that when a company pays any dividends, the stock price tends to go down
Re:Am I missing something? (Score:2)
But yes, net Income - expenses = profits.
Google Accelerator (Score:2)
Even so Google managed to deflect the anger after a mistake. Sony, Microsoft, etc. seem to be less succesful at doing this.
Re:Amazing (Score:2, Insightful)
Re:Amazing (Score:2)
I think they missed the mark with Hello.com. What a stupid investment - at least so far. What the hell were they thinking?
Re:Amazing (Score:2)
Re:1 2 3 Profit! (Score:2)
I think we have a winner here in the "Secret to Life" category...
Re:And in related news... (Score:2)