Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Google profits plummet 27 percent in Q3 2022 earnings report

arstechnica.com

Post reply on HN
Print view View original

51–60 of 119 posts

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

#51

Post by adam_arthur »

tonmoy wrote: post #37
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…

Or their profit plummeted because they grew their headcount

Yes, increasing employment expense faster than profit growth ex employment will lead to declining profitability… which is exactly my point.

What’s your point?

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

#52

Post by ren_engineer »

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.

6% revenue growth is atrocious for Google and also a bad signal for the broader economy because it means companies are drastically cutting back on ad spend

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

#54

Post by bwb »

ren_engineer wrote: post #52
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.

6% revenue growth is atrocious for Google and also a bad signal for the broader economy because it means companies are drastically cutting back on ad spend

Which is normal for an economic slow down right? Ad market always gets hit first?

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

#55

Post by jcfrei »

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.

Main point of concern seems to be that online advertising is still growing 10-20% YoY but Google revenue only grew 10% for search ads and 3.8% for youtube. So their share of ad spending is declining.

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

#56

Post by dmitriid »

moralestapia wrote: post #35
sillysaurusx wrote: post #7

Meta / Facebook is also down to $129 from a high of $387. That’s a staggering loss. FB is still in a strong position (to put it mildly), but it’s interesting to see this play out.

350B evaporated from a single company in just under a year. Whew.

350 B worth of speculation "evaporated" from a number that was nothing but speculation to begin with.

Stock market is gambling and wishful thinking, but with worse outcomes.

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

#57

Post by bwb »

time_to_smile wrote: post #12
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.

It's hilarious how often nearly this exact quote appears at the top comment in any bad news that shows up on the front page. Sure this isn't the end of the world but clearly the market doesn't believe this is a "non-deal". We're also absolutely seeing a broader shift in the tech space, and traditionally companies like Google have been more immune to market changes than others. But of course the current mantra of HN i…

I don't understand, it was down 7% today, that is no big deal in the grand scheme of things. Over the next 5 years do you think this matters at all to Google given their domination in so many areas?

IE, why is this story on the front page of HN and why is it important? What is the narrative you get from this?

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

#58

Post by pclmulqdq »

jl6 wrote: post #33
pevey wrote: post #10

Earlier quoted context omitted.

Facebook is strategically no different than myspace a decade or two ago. When the cool kids go somewhere else, it becomes clear that the platform itself was nothing special. Edit: I was downvoted, but I stand by what I wrote. Google has Android and (for now) superior search results. Netflix has content (including their own, not just other people's). Apple has their devices, which are killing it right now. These compa…

Maybe some other network will take over one day, but it doesn’t seem to be on the horizon, and until then Facebook’s network effect is a helluva moat.

That other network's name is TikTok, and it took over from Instagram after Instagram took over from Facebook.

This is, at least, where the valuable consumers (20-35 women are by far the most valuable from an advertising perspective) are spending the most time, even if they still have FB accounts.

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

#59

Post by nikanj »

linza wrote: post #25
nikanj wrote: post #16

Earlier quoted context omitted.

Too bad they now have a reputation of killing every new product. Nobody wants to invest time into using their new shiny, because people assume it’ll be gone in a year or two

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.

But at the same time, Stadia was a powerful demonstration that if you start playing Zombie Adventureland 7 on a Google product, one day your savefile will be gone.

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

#60

Post by bwb »

jcfrei wrote: post #55
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.

Main point of concern seems to be that online advertising is still growing 10-20% YoY but Google revenue only grew 10% for search ads and 3.8% for youtube. So their share of ad spending is declining.

I don't believe that for a second, do you really think that is what these numbers show?
Post reply on HN