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Alphabet Q1 2018 Earnings [pdf]

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131–140 of 168 posts

Re: Alphabet Q1 2018 Earnings [pdf]

#131

Earlier quoted context omitted.

So send a check to the Treasury. Nobody is stopping you. You could even organize a bunch of like minded people to send checks to the Treasury. I needed the tax cut. If you don’t, you don’t have to keep it. I am a better steward of my money than the government, especially when it comes to saving and investing for my family’s future.

This argument is so lazy and seems to crop up every time income tax is discussed. It's perfectly fair to criticize tax policy while also acknowledging that you (and others like you) are paying a lot less than what you should be paying.

Why would that person necessarily acknowledge that? I suspect they don't agree with you.

It's not as if there is an objectively correct amount of taxation, the matter is up for debate. To the founders of the country, for example, the federal tax rate in the US as it is today would constitute an obscene violation of their expectations.

Re: Alphabet Q1 2018 Earnings [pdf]

#132

My notes.... Numbers: - Alphabet 1Q EPS $13.33, Est. $9.300 - free cash flow for the first quarter of $4.34 billion. - 1Q Google Other Rev. $4.35B - 1Q Rev. Ex-TAC $24.9B, Est. $24.3B - Capital expense for Google more than triples: up from $2.4 billion to $7.7 billion year-on-year. That probably reflects spending on hardware, including the Nest division. - Porat says that CapEx was "almost completely split" between p…

> Capital expense for Google more than triples: up from $2.4 billion to $7.7 billion year-on-year. That probably reflects spending on hardware, including the Nest division.

$2.4 billion of that $7.7b is from their Chelsea Market purchase.

Re: Alphabet Q1 2018 Earnings [pdf]

#133

My bet is that Google is poised to become a strong market protagonist in the Public Cloud / Infrastructure space, within the next few years. I have admired the stability and the maturity of their technology platform since my AWS days.

I have had nothing but good experiences in using Google Cloud. The only issues I've had is in other tools/libraries being specifically targeted at AWS and not working with other tools. Seems like the kind of thing that fixes itself as GC gets bigger / more used.

Re: Alphabet Q1 2018 Earnings [pdf]

#134
post #128
post #87

Earlier quoted context omitted.

This comment is factually wrong (as pointed out by other responses) and evinces sadly vile sentiments. The US corporate tax rate had grown until 2017 to be much higher than it is in Western European countries (and remains relatively high). If you, like many anti-Republicans, think that Sweden is an interesting model -- please note that Swedish corporate taxes are much lower than in the US. [1] As for the notion that…

Pick a more biased source.

Are you so irrational as to reject facts because you dislike who tells you about them?

Re: Alphabet Q1 2018 Earnings [pdf]

#135
post #26

Earlier quoted context omitted.

Usually companies grow at a slower rate as they get larger. Alphabet's growth rate is actually accelerating. And they're not acquiring this growth, they're generating it organically. Truly astounding.

It's been said that they created the first self-replicating talent machine. Having worked with them, I believe it.

Could you elaborate on self-replicating talent machine (or link to posts if available)? Does that mean their talent attracts other talent from outside or their culture and process help develop (already talented) people working there into greater heights, or something else?

It sounds really interesting and might benefit others as well.

Re: Alphabet Q1 2018 Earnings [pdf]

#136
post #125
post #64

Earlier quoted context omitted.

> If we don’t want to be getting more in debt we should raise taxes on middle class people Or... cut spending.

Sure, start by taking a machete to military funding.

It's astounding that as screwed up as the budget & debt picture is, it could still be fixed if everyone were willing to be even modestly rational about our situation. The fiscal house has been on fire for a decade and most of DC wants to pretend otherwise (particularly when their favored party is in power).

- Lock spending growth for ten years at a maximum 1% per year, no matter what.

- Cut $250 billion off the military. Make the human force smaller. Trim or end various very expensive, unnecessary weapons systems. Close & consolidate a lot of bases. Aim for ~2.3% of GDP for military spending.

- Reverse the recent personal tax cuts. Raise income taxes on the top 1/3, staggered toward the top 10%. Try to get $150-$200 billion here.

- Bring Social Security costs down by $50b. Add some means testing for people that really don't need it.

- Squeeze costs out of healthcare by using Medicare/Medicaid/CHIP/VA as a club, across the board targeting of all costs in the industry. The US Government spends over $1 trillion on healthcare, find at least $100b in savings.

- Go to work on the national debt by gently abusing the position the dollar has as the global reserve currency. Have the Fed start a ten year QE program buying $500b per year back in debt and retiring it.

- Federal legalization of marijuana (another tax point for states, perhaps reducing some federal revenue dependency that could be redirected back to the federal budget); it'd also reduce the vast, expensive government prison, policing & enforcement costs. We're heading this direction now, let's just move faster.

- Meaningfully increase gasoline taxes, eg $0.20 per gallon, to fund & offset infrastructure costs. Also consider a new infrastructure tax on expensive consumer vehicles, meant to amplify the contribution by higher income persons to the infrastructure funding increase (since the gas tax hits the bottom 2/3 far harder).

That combination would produce a budget surplus within maybe five years. The surplus after a decade of spending growth locked at 1%, would be immense. We'd be down to $12 trillion in public debt within a decade, with a $26-$28 trillion economy, making the public debt easily managed. The Fed's QE debt retirement could end there. And all it would take is ten years of shared, modest pain and discipline.

Re: Alphabet Q1 2018 Earnings [pdf]

#137
post #125

Earlier quoted context omitted.

Sure, start by taking a machete to military funding.

It's astounding that as screwed up as the budget & debt picture is, it could still be fixed if everyone were willing to be even modestly rational about our situation. The fiscal house has been on fire for a decade and most of DC wants to pretend otherwise (particularly when their favored party is in power). - Lock spending growth for ten years at a maximum 1% per year, no matter what. - Cut $250 billion off the milit…

> And all it would take is ten years of shared, modest pain and discipline.

Modest for who?

Social Security: There are an absolutely insane number of people who didn't plan for self-sufficient retirement because they planned on social security checks. They shouldn't need it, but they do. Those people are a far larger problem and constitute the bulk of avoidable liability. The problem with SS is people who need it but shouldn't have, not the people who actually don't need it.

Military: Here's a truth that doesn't win elections: blind patriotism is the only palatable way to sell any absolutely enormous jobs program to the US public. A lot of these folks don't have the education or skills required to operate in a private sector unbuoyed by gov't spending. And to the extent that they do, they'd be entering newly saturated job markets with low barriers to entry.

Gas taxes: Carnage for the lots of folks who can't afford to true cost of driving but already sunk 30+% of their annual gross into a car as a 10+ year investment.

The policies you're suggesting -- at least, most of them -- would leave an enormous amount of human suffering in their wake.

Still justifiable policies / good ideas? Well, that's another discussion. But let's be realistic about the impacts.

Re: Alphabet Q1 2018 Earnings [pdf]

#138

Earlier quoted context omitted.

How can you have a 15% effective tax rate yet benefit from the standard deduction? Your taxable income after the standard deduction is $88,000 after which your state plus federal tax rate is applied to. To have an effect tax rate of 15% on $100,000 you would have to pay only $15,000 in taxes on $88,000 of taxable income. That would mean your state plus federal tax rate is 15000/88000 = 17%, which does not exist anywh…

Could be lying, or maybe they contribute 12% to their 401k, or pay for daycare with pretax dollars, or have an HSA and an IRA, etc. There's lots of causes for taxable income ≠ salary- there's no need to make baseless accusations

daycare max is only $5000

Re: Alphabet Q1 2018 Earnings [pdf]

#139

Earlier quoted context omitted.

Could be lying, or maybe they contribute 12% to their 401k, or pay for daycare with pretax dollars, or have an HSA and an IRA, etc. There's lots of causes for taxable income ≠ salary- there's no need to make baseless accusations

daycare max is only $5000

Yeah. Although when I looked at the math[1] it's a moot point since if you make $100k/year you're only paying 15% _without_ any of those mitigations.

[1] https://www.forbes.com/sites/kellyphillipserb/2018/03/07/new...

Re: Alphabet Q1 2018 Earnings [pdf]

#140
post #11

Their efficiency is impressive. On an annualized basis, they are doing ~$120B. They have ~85k employees. That means they are generating ~1.5M Revenue Per Employee. That's crazy

Yes if you don't have any support staff it is easier to reach such numbers.

This is on purpose. If the number of support people is a linear function of the number of users, the business cannot grow past half the worlds population.
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