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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

#111

Post by medvezhenok »

pb7 wrote: post #94
dmitriid wrote: post #56

Earlier quoted context omitted.

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.

Worse outcomes than gambling? Please explain how an average of 7% YoY growth after inflation over long periods of time throughout the history of the stock market is a worse outcome than gambling.

Huge caveats there and one-offs during that period which will likely not be repeated.

1) American population ~60M -> 330M since 1900.

2) Only country w/out capital destruction from WWI and WWII.

3) International money flight (Vietnam, ex. Soviet states) into U.S.

4) Saudi oil $ recycled into US markets (& others due to reserve currency status)

5) Rise of index funds and transferring "hidden" liabilities (pensions) into explicit liabilities (retirement funds, 401ks). Turning the market into a retirement scheme (look at solvency of social security; if people actually withdraw money to retire, normal market will have same issues)

Basically, the market is driven by liquidity and it has become a lot easier to get money into the market over the last ~50 years.

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

#112

Post by ikrenji »

adam_arthur wrote: post #28
kshacker wrote: post #23

Earlier quoted context omitted.

There will always be some leading parameters some lagging parameters. It makes a difference when you are overly leveraged or if you are too small but big companies like google, Amazon, apple should be able to manage some level of forecast leading or lagging the demand, no?

Sure, it’s important not to overindex on short term fluctuations. But their employment expense and headcount growth is far, far ahead of their revenue growth. A recession next year is pretty much inevitable at this point due to inflation dynamics and Fed policy. Having their stock get hammered even worse as revenues contract and margin compression eats into earnings is going to lead to many more problems for them in…

googles net profit is still a whopping 14 billy dollars. their search monopoly isn't going anywhere anytime soon either. i don't think googlers have anything to worry about

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

#113

Post by adam_arthur »

ikrenji wrote: post #112
adam_arthur wrote: post #28

Earlier quoted context omitted.

Sure, it’s important not to overindex on short term fluctuations. But their employment expense and headcount growth is far, far ahead of their revenue growth. A recession next year is pretty much inevitable at this point due to inflation dynamics and Fed policy. Having their stock get hammered even worse as revenues contract and margin compression eats into earnings is going to lead to many more problems for them in…

googles net profit is still a whopping 14 billy dollars. their search monopoly isn't going anywhere anytime soon either. i don't think googlers have anything to worry about

Absolute net profit means nothing without relating it to valuation.

$14B is not that significant for a trillion dollar company. It's all relative.

Google may be fair value or may not, but ignoring proper approaches to valuation is a good way to lose your money... as many younger investors are starting to learn.

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

#114

Post by anikom15 »

pb7 wrote: post #98
anikom15 wrote: post #67

Earlier quoted context omitted.

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?

Large companies have a ton of “cash” — but it’s not really cash, it’s parked in equities of other companies. If the whole market goes down and those equities are worth less, yes, the company is less valuable overall so market cap should be lowered but is it indicative of the company’s success as a business?

I would say so, because part of a company’s business is choosing what to invest its cash in. If a company is making bad investments (or viewed as bad in the current market), then that should reflect in its price, and reporting that information helps catalyze that.

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

#115

Post by akmarinov »

asadlionpk wrote: post #66
akmarinov wrote: post #21

Earlier quoted context omitted.

Android is shit for monetization, you need 3x as many users to match iOS revenue from ads or subscriptions

That’s for app store revenue. For ads, it is the best!

Nope, ads too. Our app makes 3x less from ads on Android, even though Android has 3x the userbase.

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

#116

Post by mark_l_watson »

sschueller wrote: post #63
mark_l_watson wrote: post #43

Earlier quoted context omitted.

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 Yo…

I was paying 15 USD, it's 23 USD now. That's a huge increase. Also the ad volume on YouTube has dramatically increased.

Because my wife has been retired for a long time, we subscribe to just about every streaming service. Whenever other services’ prices go up, I sort of resent it but not with YouTube.

It is true that “internal ads” that people place inside of their content seem to be more prevalent. I don’t see other ads on YouTube.

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

#117

Post by bigbee »

woeirua wrote: post #74

I'd be very nervous about being a GCP customer right now. Cloud services is hemorrhaging cash. How long before Google pulls the rug out from underneath a bunch of the services on GCP that aren't making money?

GCP is the fastest growing Google product, and its revenue growth rate is much higher than its costs growth. So (1) there’s a clear path to profitability and (2) it’s Google’s best story so far for a revenue stream beyond ads. They’ve been saying for several years now with every financial report that they see a huge opportunity in cloud and will continue investing. They definitely don’t lack the cash flow to continue.

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

#118

Post by bigbee »

ninth_ant wrote: post #9
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 doesn't mean the sky is falling, but may indicate a shift in attitude within Google as their costs grow faster than their revenues. Given that Google dominates email, search, browsers, phones, creator video, and a laundry list more things... it's definitely indicative of a story.

Costs grew due to a hiring binge (that can be easily stopped, or even reversed - it’s entirely in Google’s hands) and to increased costs for their data centers (hardware, electricity) which are cyclical. There’s no indication so far of any fundamental long-term changes to the cost structure.

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

#119

Post by TheCoelacanth »

robofanatic wrote: post #18
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…

> What do they actually have other than fickle network effects They can acquire other companies, basically thats how they have survived for a longtime.

Anyone else with a large pile of money can acquire other companies. Does Facebook have a competitive advantage at buying companies?
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