$5B in EU fines. Ouch.
I don't think they care as much about the fine as they do about potential changes to their business models being imposed on them going forward.
Alphabet Announces Second Quarter 2018 Results [pdf]
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Re: Alphabet Announces Second Quarter 2018 Results [pdf]
#22Mass surveillance of billions of people pays off handsomely. Google and Facebook are the only two businesses that prosper on ads, while your local newspapers, specialized websites, and journalism in general are dying.
I'm not sure it's the surveillance that makes Google earn so much. I would think the main reason is that search traffic is so valuable to advertisers.
Their whole business model is a targeting advertisement, and targeting comes from the snooping: what you do, what you eat, what you read, where you are.
Re: Alphabet Announces Second Quarter 2018 Results [pdf]
#23Revenue up 26% YOY (good but expected). Big one for me is advertising segment revenue as % of total segment revenue, down to 86.3% from 87.4%, which is good, they have got to diversify away from ads eventually.
Disappointing to see the "other bets" still at a paltry $145M and losses are growing faster. Also no mentioned whatsoever of cloud performance. Employee count up 15% but Wow, that was a big fine though.
Re: Alphabet Announces Second Quarter 2018 Results [pdf]
#24Earlier quoted context omitted.
I'm not sure it's the surveillance that makes Google earn so much. I would think the main reason is that search traffic is so valuable to advertisers.
Their whole business model is a targeting advertisement, and targeting comes from the snooping: what you do, what you eat, what you read, where you are.
Not true. Their main business is auctioning off ads on their search result pages. That auction is mostly keyword-based and not interest-based.
Re: Alphabet Announces Second Quarter 2018 Results [pdf]
#25Revenue up 26% YOY (good but expected). Big one for me is advertising segment revenue as % of total segment revenue, down to 86.3% from 87.4%, which is good, they have got to diversify away from ads eventually. Disappointing to see the "other bets" still at a paltry $145M and losses are growing faster. Also no mentioned whatsoever of cloud performance. Employee count up 15% but Wow, that was a big fine though.
As a user of GCP, they are moving with new useful products every few weeks. And it's a lot clearer as an offering than the top competitor. Perhaps fewer settings, but much easier to get your head around it. A lot of developers use it as a go-to, let's see how companies react over the next years.
And Google Cloud Next '18 from tomorrow, so surely few announcements to come.
Re: Alphabet Announces Second Quarter 2018 Results [pdf]
#26Earlier quoted context omitted.
Dumb question I’m too lazy to effectively google: what is FANG? (Assuming we’re not talking vampires)
Facebook, Amazon, Netflix, Google. It's a shorthand for high growth tech stocks. It is also sometimes abbreviated FAANG to include Apple, and sometimes it will include Microsoft. It's best, IMO, to think of it as the BIG10 NCAA division, the name only represents a subset of its membership.
Big 6 wouldn't be a bad name for this group, most people would probably know who you're talking about. Unless people are going for some sort of double-entendre with the name FANG.
Re: Alphabet Announces Second Quarter 2018 Results [pdf]
#27$5B in EU fines. Ouch.
It hurt, but they still made 3 bil. If they have to pay 5 billion once a year to ensure they have a monopoly I don't that that is a bad trade for them.
Re: Alphabet Announces Second Quarter 2018 Results [pdf]
#28Revenue up 26% YOY (good but expected). Big one for me is advertising segment revenue as % of total segment revenue, down to 86.3% from 87.4%, which is good, they have got to diversify away from ads eventually. Disappointing to see the "other bets" still at a paltry $145M and losses are growing faster. Also no mentioned whatsoever of cloud performance. Employee count up 15% but Wow, that was a big fine though.
The main story here is the decrease in EBIT margin (i.e., operating margin) and the development of the monetization metrics.
Re: Alphabet Announces Second Quarter 2018 Results [pdf]
#29Interestingly, they found it necessary to present income with and without including 2017's $2.7B and 2018's $5B in fines.
Not speaking for my employer, and only an highly amateur accountant.
I believe this is done because the appeals process is not yet final. As to whether they "found it necessary," it may be a requirement, or to frame expectations into future quarters when inevitably these numbers finally persist or reverse.