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Google profits plummet 27 percent in Q3 2022 earnings report

arstechnica.com

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Re: Google profits plummet 27 percent in Q3 2022 earnings report

#41

Post by metacritic12 »

Profits are hugely volatile due to weird accounting rules (e.g. if a company holds a publicly traded subsidiary, and that sub's price drops in the quarter, all the capital loss is counted immediately as negative for "net profit" now, IIRC due to recent accounting changes).

Better proxy to look at top line if you want a really rough picture of overall health.

Otherwise, you need to make meticulous adjustments to bottom line, justify those adjustments, and only then do you do a bit better than top line.

Re: Google profits plummet 27 percent in Q3 2022 earnings report

#42

Post by djbusby »

forgetfulness wrote: post #38
linza wrote: post #25

Earlier quoted context omitted.

It's like to counter that Google's business customers and investors see these shut down stories likely in a different light: they stopped doing something that was a distraction from core business or irrelevant. Stadia was a powerful demonstration what Google is capable of, technology-wise.

So investors can count on Google to ax a product that's underperforming, but can't count on them to make competitive products, lasting brands or keeping loyal customers.

Correct. The companies exist for the shareholders not the customers.

Re: Google profits plummet 27 percent in Q3 2022 earnings report

#43

Post by mark_l_watson »

sschueller wrote: post #24

Yet they forced all Google workspace users that were grandfathered in free plans to start paying and are currently forcing grandfathered Google music (YouTube premium) family subscribers to eat a +50% price increase. Why would I stay with Google if my loyalty counts for nothing? Same goes for Netflix, if you aren't going to reward me being with you from day 1 why should I show you any loyalty? I will take full advant…

I didn’t even blink when I saw the cost of a family plan for YouTube+YouTube Music increase. My wife and I prefer YouTube Music to Apple Music (which we get from an Apple+ family plan) and we watch a lot on YouTube. I know that there are tools to block YouTube ads, but it seems more ethical to me to pay for something we use hours a day.

Pardon some humor: I laugh when non-tech friends don’t want to pay for ad-free YouTube but they will spend a ton of money every month at Starbucks.

Between lots of quality material on philosophy, beautiful background nature videos, Lex Firdman interviews, online class materials, Dust sci-fi short films, etc., etc. YouTube is probably the best value of anything I spend money for.

Re: Google profits plummet 27 percent in Q3 2022 earnings report

#44

Post by verisimilitudes »

hbn wrote: post #32
sschueller wrote: post #24

Yet they forced all Google workspace users that were grandfathered in free plans to start paying and are currently forcing grandfathered Google music (YouTube premium) family subscribers to eat a +50% price increase. Why would I stay with Google if my loyalty counts for nothing? Same goes for Netflix, if you aren't going to reward me being with you from day 1 why should I show you any loyalty? I will take full advant…

> Why would I stay with Google if my loyalty counts for nothing? Sure, I'll go get my ad-free YouTube from the competition

Watching advertisements is completely optional.

Re: Google profits plummet 27 percent in Q3 2022 earnings report

#45

Post by [deleted] »

adam_arthur wrote: post #11

Yet their headcount grew by double digits. Many tech companies living in fantasy land, having gotten used to free money and strong organic growth essentially guaranteed from secular tailwinds. At a certain scale, and level of competition (more and more social/advertising platforms becoming popular), these companies become more cyclical rather than guaranteed growth bets. Google is a great company that will surely be…

[deleted]

Re: Google profits plummet 27 percent in Q3 2022 earnings report

#46

Post by blibble »

hbn wrote: post #32
sschueller wrote: post #24

Yet they forced all Google workspace users that were grandfathered in free plans to start paying and are currently forcing grandfathered Google music (YouTube premium) family subscribers to eat a +50% price increase. Why would I stay with Google if my loyalty counts for nothing? Same goes for Netflix, if you aren't going to reward me being with you from day 1 why should I show you any loyalty? I will take full advant…

> Why would I stay with Google if my loyalty counts for nothing? Sure, I'll go get my ad-free YouTube from the competition

the competition is a github page with a patched youtube app

Re: Google profits plummet 27 percent in Q3 2022 earnings report

#47

Post by pb7 »

twblalock wrote: post #27
bwb wrote: post #2

This seems like a bit of a non-story in some ways. Their revenue was up slightly YOY, and after that crazy huge quarter and the economic slow down this seems like a non-deal.

If Google had announced that this would happen a quarter ago, then it would be a non-story. They failed to achieve their own predictions on both EPS and revenue, by quite a bit on EPS, and that is indeed a story.

Google doesn't provide forward guidance. Any EPS estimates are done by financial firms.

Re: Google profits plummet 27 percent in Q3 2022 earnings report

#48

Post by hbn »

blibble wrote: post #46
hbn wrote: post #32

Earlier quoted context omitted.

> Why would I stay with Google if my loyalty counts for nothing? Sure, I'll go get my ad-free YouTube from the competition

the competition is a github page with a patched youtube app

Not every platform has an ad blocker or patched app solution.

Re: Google profits plummet 27 percent in Q3 2022 earnings report

#49

Post by logicalmonster »

I wonder if Google would reconsider their approach to banning so many people from various programs like AdSense at some point. So many people have been screwed over that they should be making money from. And bad actors in many locations have a much easier time just creating a new company to circumvent the ban anyway.

Re: Google profits plummet 27 percent in Q3 2022 earnings report

#50

Post by dragontamer »

hanoz wrote: post #26
ajross wrote: post #17

Earlier quoted context omitted.

Pretty much. The level of "a-ha! this confirms all my priors!" logic in these threads is just deafening. Look everyone: economies are cyclic. We had a boom. Now we're in a downturn. It's happened before, many times. It will happen again. Nothing happening today is remotely as scary as what we saw in 2008, frankly isn't nearly as disruptive as the 2001 crash. Google will be fine. The tech industry will be fine. Buy th…

> Nothing happening today is remotely as scary as what we saw in 2008 As what's happening "today" is basically a postponed and amplified version of what should have happened in 2008, I have to disagree.

Unemployment numbers at extreme lows as the Baby Boomers retire and millions of Americans are either dead or sick/disabled with Long-COVID19, hampering our economy with a lack of workers?

I don't think today's economy is anything like the frothy housing bubble was in 2007/2008 timeframe.

I think there's a possibility of a tech bubble akin to 2001, but that actually wasn't very disruptive for our economy. I see today more similar to 2001, aside from the weird supply chain issues due to a greatly diminished workforce (the Baby Boomer's retirement is the biggest challenge for this year IMO). (Of course, people have been calling a bubble in tech for decades now, but _eventually_ that damn tech bubble will pop again, lol)

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