4 ms·

revenue != money to spend

• adventured 9y ago
  Well in this case, for Google and Facebook, it is pretty close to that. Facebook has 86% gross profit margins. Google's are a little lower but still incredible, at 60%. For the most part, they print as much profit as they want to. Google could get rid of half of their staff and just print $40-$50 billion per year in profit off of search (while keeping various critical moat pieces like Android). They have nearly 80,000 employees now, the majority of that is a combination of bloat and efforts at expansion into other non-search things. To put into perspective how hilariously profitable Google (the search business) is, they're now capable of doing $35 to $40 billion per year in operating income. Last quarter they generated $8.7 billion in operating income for that segment. Google's (search biz) capital expenditures were a mere $3.5 billion out of $27 billion in sales. If they cared to do it, they could push margins to the ceiling.
• mrdodge 9y ago
  He was mistaken. It's almost a million in profit.