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Alphabet Announces Second Quarter 2018 Results [pdf]

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Re: Alphabet Announces Second Quarter 2018 Results [pdf]

#71
post #44
post #7

26% revenue growth for such a large company is astounding. Google's growth machine seems to have lasted much longer than people expected.

26% is a crazy high growth rate for a company with 89,000 employees. Even more amazing is that it's actually accelerating: Q2 2018 vs. 2017 +26% Q2 2017 vs. 2016 +21% Q2 2016 vs. 2015 +21% Q2 2015 vs. 2014 +11% Q2 2014 vs. 2013 +21% Q2 2013 vs. 2012 +11% I don't think I've ever seen this with another big company. Truly astounding.

I guess maybe the restructuring from Google to Alphabet worked. The idea was based on Berkshire Hathaway, another company with unusual growth. (http://www.berkshirehathaway.com/letters/2017ltr.pdf)

Re: Alphabet Announces Second Quarter 2018 Results [pdf]

#72
post #29
post #11

Interestingly, 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.

Well, they always highlight one off charges, it is very common.

Re: Alphabet Announces Second Quarter 2018 Results [pdf]

#73

Earlier quoted context omitted.

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.

You're right. Only one entity can take their monopoly away: the U.S. Department of Justice. The fine is just a fine.

The fines are going to keep getting larger though.

Re: Alphabet Announces Second Quarter 2018 Results [pdf]

#74

Revenue 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.

While "other bets" are not showing much income, Waymo looks like it will be a big win.

Re: Alphabet Announces Second Quarter 2018 Results [pdf]

#75
post #26
post #20

Earlier quoted context omitted.

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.

Seems reasonable. All the big oil companies used to be called “the 7 sisters” (before mergers) and then back in the 70’s for accounting it was “the big 8”.

Re: Alphabet Announces Second Quarter 2018 Results [pdf]

#77

Earlier quoted context omitted.

Revenue: sales recorded. This might or might not represent cash coming through the door in this quarter, but it represents that there is an agreement for cash and goods/services to change hands. Operating income: Money left over after you subtract the costs of operating the business and making the sale. In a manufacturing firm, for example, you would subtract the cost of the materials in the goods sold. For Google th…

I’ve always wondered this - why do internet comments have to explicitly say “I’m not a lawyer and this is not a legal advice”? I think that it’s pretty obvious and needless. What’s the consequence of not having a disclaimer? Internet has a lot of noise and it is the responsibility of the reader. I never understood why people have to say this. Same goes for “I am not a Doctor”. Are there any legal ramifications to: A)…

For a few years I studied law. The first lecture was, essentially: "You are not lawyers. Do not give legal advice. Do not claim to know anything. You are not lawyers".

Since I dropped out, I am doubly not a lawyer.

Re: Alphabet Announces Second Quarter 2018 Results [pdf]

#78

Anyone else notice that both the operating margin was down 2 points and other bets capex was down 10x?

Nest now being part of Google might explain the latter? If that's the case, one wonders where all the new revenue for Other bets comes from.

Re: Alphabet Announces Second Quarter 2018 Results [pdf]

#79

Earlier quoted context omitted.

I assume over the long haul they will be the low cost producer. They need to learn to sell and support in a higher touch manner to bring in the large corporates.

This is why Azure is outpacing AWS/GCE.

Microsoft's Enterprise sales force is second to none and they are clearly the number 2 in the cloud space. However, shifting office365 (a SAAS offering) to be reported as cloud revenue is disingenuous.

Re: Alphabet Announces Second Quarter 2018 Results [pdf]

#80

Every quarter they hire ~4000 employees, majority of them engineers and product managers. In q3 they expect even more due to new grads joining. Does anyone know how this looks compared to other big companies like amazon,microsoft,facebook, etc?

Amazon, Microsoft, and Google have all been hiring crazy amounts of people for the cloud as it is growing so fast.
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