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Google profits plummet 27 percent in Q3 2022 earnings report

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

#101

Post by pclmulqdq »

bwb wrote: post #54
ren_engineer wrote: post #52

Earlier quoted context omitted.

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?

Online advertising as a market is growing faster than Google's revenue. The real story here is that for the past year or so, they have been getting away with milking YouTube users with increasing numbers of ads, and now the consumers are rejecting that.

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

#102

Post by pclmulqdq »

pb7 wrote: post #47
twblalock wrote: post #27

Earlier quoted context omitted.

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.

This is true of every company. The guidance number just gives the financial firms a baseline.

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

#103

Post by pclmulqdq »

slt2021 wrote: post #72
Kye wrote: post #31

Earlier quoted context omitted.

Forum commentators have predicted 100% of every collapse would be no big deal. 2008 wasn't just one thing: it was a cascade failure that progressed over the course of months. Nobody really knew how bad it was until we were down to the wire looking at a complete collapse of the financial system. Every downturn potentially breaks something big that was built on the assumption of infinite growth and had its tendrils int…

as long as people consume stuff, they will be shown ads

We're seeing historic reductions in the consumption of stuff too. A lot of people don't realize that pandemic stimulus checks in the US were being spent like extra pocket money (a lot of people bought durable goods with it), and now that there is no pretense to give out more money, consumer spending is likely to be lower than it would be without those checks.

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

#104

Post by Patrol8394 »

woeirua wrote: post #89
ransom1538 wrote: post #81

Earlier quoted context omitted.

I tell people this all the time. I just get laughed out of a room. GOOGLE WILL SUNSET GCP. They don't work on it, they hate the product, the UI is terrible, they don't use it internally. It is 8 years? behind AWS. The GCP product is designed at scale to compete with AWS ($$) - there just isn't the customer base for 8 year old dying cloud infra. So they are throwing cash at this beast which has NO future. [I manage 30…

I highly doubt that they would ever just sunset GCP entirely. That would be committing suicide. No company would ever trust them ever again for anything even remotely important. However, they will absolutely shutdown some of the other value-add services like AI-as-a-service and some of these others that are probably not being heavily used.

>they will absolutely shutdown some of the other value-add services

They need to be competitive, and to do so, they must be at least feature pairing with AWS/Azure. I can't think of a single service they can simply shutdown. Actually they need to build more.

I am an AWS long time user. I have toyed around with GCP, and I found it a very disconnected platform. They don't seem to have a unified story around it.

AWS is not perfect, but it is just waaaay ahead. You can tell, they are a heavy customer centric company.

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

#105

Post by slt2021 »

pclmulqdq wrote: post #103
slt2021 wrote: post #72

Earlier quoted context omitted.

as long as people consume stuff, they will be shown ads

We're seeing historic reductions in the consumption of stuff too. A lot of people don't realize that pandemic stimulus checks in the US were being spent like extra pocket money (a lot of people bought durable goods with it), and now that there is no pretense to give out more money, consumer spending is likely to be lower than it would be without those checks.

things will balance out, people will consumer fewer of luxury goods, will consume more of cheaper stuff.

Brands will keep spending to keep their customers, and cheaper alternatives will keep spending on ads to promote their sales.

In competitive market and free economy ads are a fundamental engine that will keep economy running. Ads is sort of toll booth that takes their cut no matter what

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

#106

Post by djbusby »

P_I_Staker wrote: post #91
djbusby wrote: post #39

Earlier quoted context omitted.

Well, Reddit is increasingly user hostile and their mobile experience gets worse every quarter. They'll end up killing themselves before they can IPO.

I would love to hear more about how Reddit is user hostile, though I have a few thoughts: - Inconsistent, biased, and downright arrogant moderation. - Communities drenched in extremism and horrendous discourse. Interacting with a Redditor is like trying to hug a porcupine - Rampant trolling, even in the best communities. Also, as a side note was getting sick of all the health and fitness cults. I got fed up getting b…

Well, I'm not even talking about the community. I'm pointing at the tech, like, nagging for the App, please sign in, crappy video player, please sign in, random scrolling, random page reload, try our App!

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

#107

Post by P_I_Staker »

djbusby wrote: post #106
P_I_Staker wrote: post #91

Earlier quoted context omitted.

I would love to hear more about how Reddit is user hostile, though I have a few thoughts: - Inconsistent, biased, and downright arrogant moderation. - Communities drenched in extremism and horrendous discourse. Interacting with a Redditor is like trying to hug a porcupine - Rampant trolling, even in the best communities. Also, as a side note was getting sick of all the health and fitness cults. I got fed up getting b…

Well, I'm not even talking about the community. I'm pointing at the tech, like, nagging for the App, please sign in, crappy video player, please sign in, random scrolling, random page reload, try our App!

Oh yeah, it's a dumpster fire. Also, did they really kill RPAN? I don't think that's a good idea, unless they were REALLY desperate for cuts, even if it wasn't very popular.

I actually thought it filled a niche that is slightly different from what I find on twitch, youtube, facebook, ect.

I found a lot of videos of random people just doing random things. I do happen to think the community may have lost it's way... OTH the era that some people see as the golden age of reddit included stuff like the fappening.

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

#108

Post by colinmhayes »

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

Growth was like 50% last year. They're just coming back to earth in a post pandemic world. In fact growing revenue at all now that people spend so much less time on their computer seems like a huge win to me, now they just need to control costs.

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

#109

Post by colinmhayes »

pclmulqdq wrote: post #58
jl6 wrote: post #33

Earlier quoted context omitted.

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.

facebook and tiktok serve completely different niches, as much as mark doesn't want to admit it. Tiktoks network is billions of people, facebook still controls the "social" network. That may be less important as people transition to online personalities, but I don't see the demand for an actual social network of real life friends/acquaintances going away anytime soon.

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

#110

Post by colinmhayes »

anikom15 wrote: post #67
metacritic12 wrote: post #41

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 botto…

If a company’s asset goes down, why shouldn’t that be considered a loss? There doesn’t seem to be anything weird about that. Am I misunderstanding the reporting?

the idea is the securities they hold has nothing to do with their actual business or cash flow.
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