Google Passes Exxon to Become Second-Most Valuable U.S. Company • Hacker News Board

Re: Google Passes Exxon to Become Second-Most Valuable U.S. Company

#71

Post by wmeredith » Fri, Feb 07, 2014, 9:14 PM UTC

hayksaakian wrote: post #66

throwaway_yy2Di wrote: post #48

Yet it's so small : XOM ('12) GOOG ('13) Revenue $453 B/a $60 B/a Profit $45 B/a $13 B/a Market cap $393 B $394 B https://en.wikipedia.org/wiki/Google https://en.wikipedia.org/wiki/ExxonMobil (101 for anyone who doesn't know this: revenue is how much you sell, profit is what's left over for shareholders, market cap is how much shareholders think that profit stream is worth). Relevant: check out wikipedia's rankings o…

We often ridicule tech companies for having inflated valuations. I don't disagree with this in general. In your specific comparison, which company do you genuinely think will grow more over the next N years? Google has shown the ability to dominate multiple markets time after time. I can't see Exxon as any more than an oil company. There's certainly nothing stopping them (any more than any other business) from innova…

The only market that Google has ever dominated profitably is search engine advertising. Despite, Glass, self driving cars, Android (free), Feedburner (dominated and shuttered) Gmail, Maps, etc... 96%[1] of their revenue is from selling ads.

I love a lot of Google products, but the only one they make any money on, is one I despise. It pays for everything else.

[1]http://venturebeat.com/2012/01/29/google-advertising/

Re: Google Passes Exxon to Become Second-Most Valuable U.S. Company

#72

Post by [deleted] » Fri, Feb 07, 2014, 9:14 PM UTC

hayksaakian wrote: post #66

throwaway_yy2Di wrote: post #48

Yet it's so small : XOM ('12) GOOG ('13) Revenue $453 B/a $60 B/a Profit $45 B/a $13 B/a Market cap $393 B $394 B https://en.wikipedia.org/wiki/Google https://en.wikipedia.org/wiki/ExxonMobil (101 for anyone who doesn't know this: revenue is how much you sell, profit is what's left over for shareholders, market cap is how much shareholders think that profit stream is worth). Relevant: check out wikipedia's rankings o…

We often ridicule tech companies for having inflated valuations. I don't disagree with this in general. In your specific comparison, which company do you genuinely think will grow more over the next N years? Google has shown the ability to dominate multiple markets time after time. I can't see Exxon as any more than an oil company. There's certainly nothing stopping them (any more than any other business) from innova…

[deleted]

Re: Google Passes Exxon to Become Second-Most Valuable U.S. Company

#73

Post by Pxtl » Fri, Feb 07, 2014, 9:15 PM UTC

JumpCrisscross wrote: post #15

raldi wrote: post #10

Earlier quoted context omitted.

Wikipedia lists the characteristics of a monopoly here: http://en.wikipedia.org/wiki/Monopoly#Characteristics Which of those characteristics do you see in Google?

Single seller - Google commands 2/3 of search engine volume [1] and 1/3 of online advertising [2]. Yes, they have competition, but in several verticals they are the only practical choice. Note that this does not make them an abusive monopoly, which is what those characteristics seem to be describing more than a monopoly per se . [1] http://searchenginewatch.com/article/2289560/Googles-Search-... [2] http://www.bloomb…

... I'm actually surprised it's only 2/3. I mean, there are fringe geeks on DuckDuckGo, and IE Windows default search is Bing, but still I've never seen anybody IRL actually open anything but Google for a web search.

Re: Google Passes Exxon to Become Second-Most Valuable U.S. Company

#74

Post by haberman » Fri, Feb 07, 2014, 9:16 PM UTC

brudgers wrote: post #32

Whoopdee shit. If Exxon and Google were both liquidated today which one would produce more cash? Google share prices reflect a speculator's premium. Exxon's better reflect the value of the underlying assets.

By all means sell Google and buy Exxon. Check back with us in 10 years about how that went.

> Exxon's better reflect the value of the underlying assets.

That's like valuing a car based on the price of the steel it contains instead of where it can take you.

Re: Google Passes Exxon to Become Second-Most Valuable U.S. Company

#75

Post by igorgue » Fri, Feb 07, 2014, 9:17 PM UTC

throwaway_yy2Di wrote: post #48

Yet it's so small : XOM ('12) GOOG ('13) Revenue $453 B/a $60 B/a Profit $45 B/a $13 B/a Market cap $393 B $394 B https://en.wikipedia.org/wiki/Google https://en.wikipedia.org/wiki/ExxonMobil (101 for anyone who doesn't know this: revenue is how much you sell, profit is what's left over for shareholders, market cap is how much shareholders think that profit stream is worth). Relevant: check out wikipedia's rankings o…

We all know what PG says the most important thing for a startup like Google is growth and that's the only thing that matters :)

Re: Google Passes Exxon to Become Second-Most Valuable U.S. Company

#76

Post by hawkharris » Fri, Feb 07, 2014, 9:19 PM UTC

skriticos2 wrote: post #63

throwaway_yy2Di wrote: post #48

Yet it's so small : XOM ('12) GOOG ('13) Revenue $453 B/a $60 B/a Profit $45 B/a $13 B/a Market cap $393 B $394 B https://en.wikipedia.org/wiki/Google https://en.wikipedia.org/wiki/ExxonMobil (101 for anyone who doesn't know this: revenue is how much you sell, profit is what's left over for shareholders, market cap is how much shareholders think that profit stream is worth). Relevant: check out wikipedia's rankings o…

Hm, applying a bit of my personal sense, I'd say Exxon's business is drying up in the foreseeable future (oil is running out, renewable energy is on the rise). Google is a software business with very strong network effects. I definitely see how there is more demand for software in 100 years than for oil (as a fuel). Economics is not a pure numbers game. They [edit: the numbers] just try abstract what the companies do…

Exxon Mobil invests more money in alternative energy research than any other organization in the world.

Re: Google Passes Exxon to Become Second-Most Valuable U.S. Company

#77

Post by igorgue » Fri, Feb 07, 2014, 9:19 PM UTC

wmeredith wrote: post #71

hayksaakian wrote: post #66

Earlier quoted context omitted.

We often ridicule tech companies for having inflated valuations. I don't disagree with this in general. In your specific comparison, which company do you genuinely think will grow more over the next N years? Google has shown the ability to dominate multiple markets time after time. I can't see Exxon as any more than an oil company. There's certainly nothing stopping them (any more than any other business) from innova…

The only market that Google has ever dominated profitably is search engine advertising. Despite, Glass, self driving cars, Android (free), Feedburner (dominated and shuttered) Gmail, Maps, etc... 96%[1] of their revenue is from selling ads. I love a lot of Google products, but the only one they make any money on, is one I despise. It pays for everything else. [1] http://venturebeat.com/2012/01/29/google-advertising/

I was thinking about it last time. And it's sad that it's 2014 and most tech companies that get tons of press and admiration make money with advertisement, something we all hate.

Re: Google Passes Exxon to Become Second-Most Valuable U.S. Company

#78

Post by [deleted] » Fri, Feb 07, 2014, 9:23 PM UTC

skriticos2 wrote: post #63

throwaway_yy2Di wrote: post #48

Yet it's so small : XOM ('12) GOOG ('13) Revenue $453 B/a $60 B/a Profit $45 B/a $13 B/a Market cap $393 B $394 B https://en.wikipedia.org/wiki/Google https://en.wikipedia.org/wiki/ExxonMobil (101 for anyone who doesn't know this: revenue is how much you sell, profit is what's left over for shareholders, market cap is how much shareholders think that profit stream is worth). Relevant: check out wikipedia's rankings o…

Hm, applying a bit of my personal sense, I'd say Exxon's business is drying up in the foreseeable future (oil is running out, renewable energy is on the rise). Google is a software business with very strong network effects. I definitely see how there is more demand for software in 100 years than for oil (as a fuel). Economics is not a pure numbers game. They [edit: the numbers] just try abstract what the companies do…

[deleted]

Re: Google Passes Exxon to Become Second-Most Valuable U.S. Company

#79

Post by MichaelApproved » Fri, Feb 07, 2014, 9:23 PM UTC

throwaway_yy2Di wrote: post #48

Yet it's so small : XOM ('12) GOOG ('13) Revenue $453 B/a $60 B/a Profit $45 B/a $13 B/a Market cap $393 B $394 B https://en.wikipedia.org/wiki/Google https://en.wikipedia.org/wiki/ExxonMobil (101 for anyone who doesn't know this: revenue is how much you sell, profit is what's left over for shareholders, market cap is how much shareholders think that profit stream is worth). Relevant: check out wikipedia's rankings o…

I believe one reason why Google and even Apple are able to surpass Exxon is because Exxon pays out a large portion of its profit in dividends while Google and Apple retain much of theirs in bank accounts as assets. If Exxon didn't pay a dividend they'd easily be the largest company in the world with regards to market cap.

Re: Google Passes Exxon to Become Second-Most Valuable U.S. Company

#80

Post by JonFish85 » Fri, Feb 07, 2014, 9:24 PM UTC

hawkharris wrote: post #76

skriticos2 wrote: post #63

Earlier quoted context omitted.

Hm, applying a bit of my personal sense, I'd say Exxon's business is drying up in the foreseeable future (oil is running out, renewable energy is on the rise). Google is a software business with very strong network effects. I definitely see how there is more demand for software in 100 years than for oil (as a fuel). Economics is not a pure numbers game. They [edit: the numbers] just try abstract what the companies do…

Exxon Mobil invests more money in alternative energy research than any other organization in the world.

Exxon Mobil isn't going anywhere. As oil-usage decreases (which is still likely a long ways off), I'm sure they'll be right there to provide whatever the next energy source is.