Interesting that Apple's net profits last quarter was greater than Alphabet's revenue.
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Alphabet Becomes the Most Valuable Public Company in the World
71–80 of 445 posts
Re: Alphabet Becomes the Most Valuable Public Company in the World
#72Earlier quoted context omitted.
I absolutely agree that comparing Google and apple is silly. But calling Google an "artificial intelligence" company is just feeding another buzzword into the fire.
Why? It's obvious that is where they are going.
Where they are going yes but not what they are today.
Re: Alphabet Becomes the Most Valuable Public Company in the World
#73Good time to short Alphabet? I haven't looked yet but I bet their P/E ratio is bubble-ish.
FB is near 90. MSFT is 39. Yahoo 117.
Re: Alphabet Becomes the Most Valuable Public Company in the World
#74Earlier quoted context omitted.
Sergey/Larry explain it better than I would. http://infolab.stanford.edu/~backrub/google.html Scroll down to "Appendix A: Advertising and Mixed Motives"
What does that have to do with this news though?
The news is basically that Google released their earnings today. The click growth is part of that news.
Re: Alphabet Becomes the Most Valuable Public Company in the World
#75"SEO isn't good for users or the Internet at large. ... It's a bug that you could rank highly in Google without buying ads, and Google is trying to fix the bug." (1)
That statement is more-or-less the reality of every google-dependent business in the world at this point - Google is getting better and better at charging advertisers for their product - everybody is going to wind up paying the Google tax and this Quarter's results are evidence that GOOG is moving in the "right" direction to that end.
(1) http://www.seobook.com/virtual-real-estate-virtually-disappe...
Re: Alphabet Becomes the Most Valuable Public Company in the World
#76Kudos to Google. I'm happy for them. But it's also worth pointing out that Market Cap is a horrendous way to measure how "valuable" or "powerful" a company is.
Companies A and B both want to raise $10B to fund a new investment opportunity. A decides to issue corporate bonds, because it doesn't want to dilute its shareholders. B decides to issue new equity instead, because they feel that their company stock is actually overvalued at the moment. Net result: A's market cap remains the same. B's market cap increased by $10B. No difference in future projected earnings/revenue between the 2 of them, but B now leads A in market cap.
Another scenario: Companies A and B both made $20B in profits over the past year. Company A decides to keep $5B in the bank, and returns the remaining $15B to their shareholders. Company B hoards all $20B, and doesn't do anything with it besides letting it sit in the bank. Company A's market cap drops by $15B because of their decision to issue dividends, and company B's market cap now leads A, just because they decided to sit on their pile of money.
If you want to judge how powerful a company is, look at its revenue, profits or total assets. If you want to judge how successful a company is, look at its investor returns. Market cap isn't really all that meaningful a metric to judge a company by.
Re: Alphabet Becomes the Most Valuable Public Company in the World
#77EDIT: Go fuck yourself, HN.
Nominal stock prices are irrelevant.
You can have 100 shares at $1 each or 10 shares at $10 each. Same thing.
Companies sometimes split there shares (i.e. Redenominate their units) just so it's easier to buy for individual investors.
What we are talking about is market capitalisation, I. E. Total share count x per share price.
Re: Alphabet Becomes the Most Valuable Public Company in the World
#78Earlier quoted context omitted.
> b) The shift from desktop to mobile should have the effect of reducing clicks. Can you clarify this statement?
I referenced this higher up, but here it is: we aren't shifting from desktop to mobile, because desktop has leveled off. We're taking time out of literally all the other stuff we do in life, and shifting that to mobile.
Yes, I get that, but the word "shift" in this context isn't all that important. The "desktop/high CTR" leveling off while "mobile/low CTR" grows was the important bit. I'm not the first person to call that a shift.
Re: Alphabet Becomes the Most Valuable Public Company in the World
#79Re: Alphabet Becomes the Most Valuable Public Company in the World
#80People were losing their minds over the fact that iPhone shipments slightly declined. If you look at the year over year growth (excluding the massive bump for iPhone 6), it would show that AAPL is still ahead of the growth curve. See https://imgur.com/vO0kPEy * Apple's quarterly revenue: $75.9bil * Apple's quarterly profit: $18.4bil * Google's quarterly revenue: $21.3bil * Google's quarterly profit: $6.8bil In sheer…
Very true, but Apple has been the darling for a long time, and Wall Street has be desperate to find any flaw in their plans. Apple is a big part of a lot of people's 401k and other investments, so paranoia prevails.
Alphabet is only just now entering its Apple-like growth phase, however. It would seem that it could only go up, whereas at some point, Apple will saturate the market and have to start going down. Seem, mind you. This has nothing to do with reality, only with investor psychology.