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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

#91
post #39

Earlier quoted context omitted.

I don't know if this is really true. That shift has occurred to some extent. On the other hand, it seems to me that all the most sociable people I know are still on Facebook. There definitely are a lot of people that interact with Facebook less, which is obviously huge. I'm not sure these other social media sites will eat up Facebooks core business. It seems like Facebook could continue to struggle to grow, but these…

Well, Reddit is increasingly user hostile and their mobile experience gets worse every quarter. They'll end up killing themselves before they can IPO.

I would love to hear more about how Reddit is user hostile, though I have a few thoughts: - Inconsistent, biased, and downright arrogant moderation. - Communities drenched in extremism and horrendous discourse. Interacting with a Redditor is like trying to hug a porcupine - Rampant trolling, even in the best communities.

Also, as a side note was getting sick of all the health and fitness cults. I got fed up getting banned for arguments with someone insulting me because I suggested that consuming massive amounts of fat might have negative health consequences, or that deadlifts are a frequent source of injury, both severe and chronic, or that peanut butter is actually one of the purest foods you can buy (seriously, read the label, it's almost entirely peanuts and salt)...

It got so frustrating. I understand that there's counter arguments to this stuff, but these are very mainstream and rational beliefs, including with people that know what they're talking about. It seemed like the safer advise was being shouted down.

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

#92
post #34

Earlier quoted context omitted.

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

No, Android is perfect for Googles monetization. This is why Apple wasn't able to fsck them like they did Meta. Building their own platforms was a brilliant idea that made Google resilient against competition owning their Ad delivery platforms. This has nothing to so with the side hobby that's Play Store.

>Building their own platforms was a brilliant idea that made Google resilient against competition owning their Ad delivery platforms.

What platform did they build though?

Android was bought from a third party. YouTube was bought. Chromium was forked from Webkit. Every of Google's in-house projects besides search engine and ad network was a failure.

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

#93
post #34

Earlier quoted context omitted.

No, Android is perfect for Googles monetization. This is why Apple wasn't able to fsck them like they did Meta. Building their own platforms was a brilliant idea that made Google resilient against competition owning their Ad delivery platforms. This has nothing to so with the side hobby that's Play Store.

>Building their own platforms was a brilliant idea that made Google resilient against competition owning their Ad delivery platforms. What platform did they build though? Android was bought from a third party. YouTube was bought. Chromium was forked from Webkit. Every of Google's in-house projects besides search engine and ad network was a failure.

Gmail worked. As they use it themselves I imagine they must be unable to ignore feedback, sunset it or turn it into the usual steaming pile of horse poop.

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

#94

Earlier quoted context omitted.

350B evaporated from a single company in just under a year. Whew.

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.

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

#95
post #57

Earlier quoted context omitted.

It's hilarious how often nearly this exact quote appears at the top comment in any bad news that shows up on the front page. Sure this isn't the end of the world but clearly the market doesn't believe this is a "non-deal". We're also absolutely seeing a broader shift in the tech space, and traditionally companies like Google have been more immune to market changes than others. But of course the current mantra of HN i…

I don't understand, it was down 7% today, that is no big deal in the grand scheme of things. Over the next 5 years do you think this matters at all to Google given their domination in so many areas? IE, why is this story on the front page of HN and why is it important? What is the narrative you get from this?

> it was down 7% today

9.63% actually

> that is no big deal in the grand scheme of things

I'm not sure how you are making this claim. Today is the 2nd largest single daily drop in GOOG in the last 10 years the company (as a precent).

The 1st largest drop was on 3/16/2020 The 3rd was on 3/12/2020

That means we are seeing early pandemic level drops in a price over an earnings call.

Both of those other drops where due to systemic shocks to the market, this drop reflects just GOOG.

So this is arguably the largest single day decline in the share price of GOOG due solely to their own performance, not do to macro trends.

> why is this story on the front page of HN and why is it important?

As already answered this is a historic decline in the price of GOOG.

> What is the narrative you get from this?

The larger story is that we're seeing a down turns in all the companies that where the hallmark of the current tech boom. The term FAANG originated because those stock were seen as incredibly strong, high growth stocks.

The big part of this story is, as I have mentioned, these companies aren't losing value because of an industry trend that is equally effecting all stocks (that's happening as well) but because of their own individual performance.

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

#96

Earlier quoted context omitted.

I tell people this all the time. I just get laughed out of a room. GOOGLE WILL SUNSET GCP. They don't work on it, they hate the product, the UI is terrible, they don't use it internally. It is 8 years? behind AWS. The GCP product is designed at scale to compete with AWS ($$) - there just isn't the customer base for 8 year old dying cloud infra. So they are throwing cash at this beast which has NO future. [I manage 30…

They could, but I don't think they will. They desperately need to build new revenue streams, as of now, most of the $$$ still come from ads/search. Sunsetting GCP will immensely damage their reputation.

I agree. We are exclusively using GCP for different services, including bigquery. If they do something like that, they'll be commiting suicide.

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

#97
post #34

Earlier quoted context omitted.

No, Android is perfect for Googles monetization. This is why Apple wasn't able to fsck them like they did Meta. Building their own platforms was a brilliant idea that made Google resilient against competition owning their Ad delivery platforms. This has nothing to so with the side hobby that's Play Store.

>Building their own platforms was a brilliant idea that made Google resilient against competition owning their Ad delivery platforms. What platform did they build though? Android was bought from a third party. YouTube was bought. Chromium was forked from Webkit. Every of Google's in-house projects besides search engine and ad network was a failure.

Google (!) what Android and YouTube were when they were bought, compare them to Android 13 and YouTube of 2022 and you'll have your answer.

Intellectual laziness of your "takedown" reminds me of that dude that pronounced Dropbox pointless because rsync is enough.

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

#98

Profits are hugely volatile due to weird accounting rules (e.g. if a company holds a publicly traded subsidiary, and that sub's price drops in the quarter, all the capital loss is counted immediately as negative for "net profit" now, IIRC due to recent accounting changes). Better proxy to look at top line if you want a really rough picture of overall health. Otherwise, you need to make meticulous adjustments to botto…

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?

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

#99
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?

They grew cloud revenue some 30%+

While I'm usually nervous about Google discontinuing things, they'd be idiots to cancel something with $6B in revenue growing that fast.

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

#100
post #88
post #53

Earlier quoted context omitted.

android and ios do that leaves crappy settop boxes

iOS has an ad-free YouTube app? Or do you mean a Safari adblocker and then watching all your YouTube in Safari where the experience sucks? What if I want to AirPlay? What about Chromecast?

> iOS has an ad-free YouTube app?

yes

> What if I want to AirPlay? What about Chromecast?

"that leaves crappy settop boxes"

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