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Google Profits Surge on Strong Ad Demand

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Re: Google Profits Surge on Strong Ad Demand

#81

Post by aurelianito »

adventured wrote: post #58
ethanbond wrote: post #47

Earlier quoted context omitted.

With logic like that it's remarkable that our markets aren't dominated by 50, 100, 200, even 500 year old goliaths. "They're big! They'll be here forever and only get bigger!"

I never said or implied such a thing, you're exaggerating. What I said, is that it's the exception for a tech juggernaut to 'get eaten for lunch.' And that is indeed a fact. Oracle, Microsoft, Intel, HP, Dell, Cisco, Google, Amazon, IBM, Texas Instruments, SAP, EMC, Qualcomm, Samsung, Apple Where's the lunch eating? Where's the wasteland of destruction of tech titans? Most of those are now old companies, some are ver…

DEC, Silicon Graphics, Sun, Gateway just as I remember now.

Re: Google Profits Surge on Strong Ad Demand

#82

Post by MarkMc »

bitmapbrother wrote: post #57

After hours is through the roof. It's currently at $808 as of this time. I wouldn't be surprised if Google is the world's most valuable company tomorrow.

Apple still beats them, I think. At $808 Google's market cap would be around $550 billion, while Apple's is currently around $600 billion.

Re: Google Profits Surge on Strong Ad Demand

#84

Post by jgalt212 »

adventured wrote: post #44
gallonofmilk wrote: post #37

Earlier quoted context omitted.

I predict that in the next 10 years you're going to see major shifts and companies like Facebook will be eaten for lunch

Zero chance of that. Facebook will be doing $16 to $20 billion in profit within five or so years. They'll have accumulated $60 to $80 billion in cash. They'll have a half trillion dollar market cap in the next few years. They'll liberally use the cash and market cap to buy into any market they're missing out on, just as Microsoft purchased LinkedIn and Skype to try to stay in the game. These types of companies do not…

> Facebook will be doing $16 to $20 billion in profit within five or so years.

With no user attrition, I think that prediction is pretty reasonable as their revenue per customer is still quite low with plenty of room to run. But if the fickle consumer starts to migrate elsewhere, as they are wont to do, and FB cannot purchase or build those elsewheres, then those forecasts could be in trouble.

Re: Google Profits Surge on Strong Ad Demand

#85

Post by zaroth »

imaginenore wrote: post #38
mpg33 wrote: post #11

Earlier quoted context omitted.

What? That's seems absurdly high..

It's not. "Insurance", "loans", "mortgage" are all $44+ per click. Some very specialized one like "mesothelioma suit" are $800+. Even misspellings like "mesotheliama" are $600+.

I try to remember searching on that term and clicking the ads from time to time, for no other reason than to line Google's pockets. It seems like the quickest way for me to pay them back for the various free (and ad free) services that I use from them.

Probably there is something terribly wrong with this, but I'm not entirely convinced. I am a human typing a search, and physically clicking a link in the results. I just don't have or happen to know anyone who has mesothelioma.

Re: Google Profits Surge on Strong Ad Demand

#86

Post by joosters »

adventured wrote: post #69
ethanbond wrote: post #66

Earlier quoted context omitted.

Fair enough. I'm perhaps overly cynical when I see this much optimism.

Optimism? It's simple extrapolation and a quick historical reference on how equivalently massive companies hold up over the near-term (5-10 years). I wasn't offering up an optimistic scenario. In just three years they'll very likely hit $13 to $15 billion in annual profit or so (it'll be $8.5 to $9 billion in the next 4 quarters alone), and have $50+ billion in cash. What is inbound in the next three years that will…

It's simple extrapolation

That's the problem though. There's a good reason why just about every financial prospectus includes the phrase "Past performance is no guarantee of future results".

Then from the 5 to 10 year span, what's going to come flying in that is going to steal their $70 to $100 billion in cash?

Why are you so confident that you can predict everything that might happen in the next 5 to 10 years?

Re: Google Profits Surge on Strong Ad Demand

#87

Post by loqwe »

mathattack wrote: post #77
paulpauper wrote: post #29

Amazon, Facebook , Google - three stocks to rule the world. They cannot do any wrong, and I don't mean that sarcastically. Buying these stocks is like investing in the companies that are building the matrix, but it's real life. It's just nuts..even Microsoft and Cisco in the 90's..the growth was finite, but there is no limit to Facebook, Google and Amazon. Every quarter is a crusher..over and over, year after year. J…

One can (and should!) argue that their great growth prospects are baked into their stock prices already.

Then why do the prices keep going up?

Re: Google Profits Surge on Strong Ad Demand

#88

Post by jgalt212 »

paulpauper wrote: post #29

Amazon, Facebook , Google - three stocks to rule the world. They cannot do any wrong, and I don't mean that sarcastically. Buying these stocks is like investing in the companies that are building the matrix, but it's real life. It's just nuts..even Microsoft and Cisco in the 90's..the growth was finite, but there is no limit to Facebook, Google and Amazon. Every quarter is a crusher..over and over, year after year. J…

> The small mobile screen is perfect for advertising.

Clearly this must be a typo. Advertisers pay more for larger ads. All this mobile ad revenue is based on app installs. And the clicks are often fat fingers on a phone.

Our Google ad salesman keeps pressuring us to spend on mobile. We try to exclude this segment, but we keep getting ads served to mobile devices and clicks. Your comment reminds me that I need to get this sorted out.

Re: Google Profits Surge on Strong Ad Demand

#89

Post by mtgx »

seibelj wrote: post #4

Mobile app ads keep paying more and more. I'm regularly getting $1 per click, and sometimes as high as $5 (finance category). I can't remember ever getting this much for websites. I'm using google admob

I wonder if the fact that Google bans ad-blocking from its store and pre-loads Chrome on Android, which doesn't allow ad-blocking extensions either, has anything to do with that.

Somehow, between its 5 other anti-trust charges against Google, the EU seems to have missed one of Google's biggest abuses of its monopoly-level position in the mobile market.

Re: Google Profits Surge on Strong Ad Demand

#90

Post by murbard2 »

ethanbond wrote: post #47
adventured wrote: post #44

Earlier quoted context omitted.

Zero chance of that. Facebook will be doing $16 to $20 billion in profit within five or so years. They'll have accumulated $60 to $80 billion in cash. They'll have a half trillion dollar market cap in the next few years. They'll liberally use the cash and market cap to buy into any market they're missing out on, just as Microsoft purchased LinkedIn and Skype to try to stay in the game. These types of companies do not…

With logic like that it's remarkable that our markets aren't dominated by 50, 100, 200, even 500 year old goliaths. "They're big! They'll be here forever and only get bigger!"

Standard oil, founded 1870, is worth well over $600 if you count the companies it was broken into (ExxonMobil, Chevron, Amocco before its purchase...)

Cargill, founded 1865, makes over $120B of revenue annually. (That's half of Apple, but two Google). Probably worth around $300B

GE, founded 1892, $286B

IBM, founded 1911, $154B

JP Morgan & Morgan Stanley, both descendents of 1854's Peabody, Morgan & co: $300B

Ford, founded 1903, $50B

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