Alphabet slides 5% after missing earnings expectations on revenue of $20.3B

Post by omarchowdhury » Thu, Apr 21, 2016, 11:50 PM UTC

mediocrejoker wrote: post #60

avar wrote: post #45

Earlier quoted context omitted.

Why can't they sell products and be like an Apple, Oracle, Microsoft. Econ 101 on HN again. Aside from what Google's doing. You're assuming that the value someone personally derives from using something is the value other people derive from pushing it to them. I.e. you have ads on Google, some of which cost >$10. To the companies paying for them that makes sense, because they might be selling a product that costs $50…

Are the companies paying $10 per click? Otherwise I'm not sure you're making the appropriate comparison.

Post by [deleted] » Thu, Apr 21, 2016, 11:51 PM UTC

jhulla wrote: post #19

Alphabet isn't the only big corp down after hours today. As of now: Microsoft - down 5%. http://www.marketwatch.com/investing/stock/msft Visa - down 4% http://www.marketwatch.com/investing/stock/v Starbux - down 4% http://www.marketwatch.com/investing/stock/sbux In each case, the cause is different. But one thing is common, trailing PE ratios of all four are high compared to historical norms. High PE ratios are maint…

Post by diffraction » Thu, Apr 21, 2016, 11:56 PM UTC

adventured wrote: post #61

tommoor wrote: post #56

Earlier quoted context omitted.

They seem to be doing a pretty good job of diversifying? The profits haven't caught up yet, granted, but this is a company with many of the smartest people in the world working on future game-changing tech and sinking a ton of money into research. Still bullish here :)

They are doing a poor job of diversifying. Those side businesses are producing a small amount of revenue. It would be one thing if the profits hadn't caught up, the real problem is there isn't much in the way of sales to begin with. I see no example business of theirs that will get them even moderately diversified off of online advertising in the next five years. And I'm not speaking of technology Alphabet is messing…

Post by skrowl » Fri, Apr 22, 2016, 12:03 AM UTC

tcbawo wrote: post #71

tma-1 wrote: post #11

Long-term, I am not very bullish on Google/Alphabet. More than 90% of their profits come online advertising, something that can be easily blocked for life with a simple browser extension/plugin. Some worrying figures[1]: * US ad blocking grew by 48% to reach 45 million active users in 12 months up to June 2015. * Ad blocking grew by 41% globally in the last 12 months. * US ad blocking grew by 48% to reach 45 million…

You can't block ads with streaming services or other captive audiences. They seen well positioned in this regard.

Post by garysieling » Fri, Apr 22, 2016, 12:24 AM UTC

jmarbach wrote: post #79

pmyjavec wrote: post #35

I wonder if other search engines are also starting to catch up? I've been using DuckDuckGo for a while now and there was a time when it felt like I was missing out; However the product has improved dramatically of late and forget I'm no longer using Google.

The current search market is ~4.6 billion searches per day. Google owns about 75% of the market, with ~3.5 billion searches per day. DuckDuckGo has about 12 million searches per day, ~0.25% of the market. Bing/Yahoo are the other big players in the search market, with between ~10-12% each.