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It's risk management through diversification attempts. Google, like any other large scale extremely successful single product[1] company, hedges market risks in
by rmoriz 8y ago
It's risk management through diversification attempts. Google, like any other large scale extremely successful single product[1] company, hedges market risks in occupying "hot" spaces. Same with MS, Apple and all other giants, even in non-tech.
[1] see financial report of the last year (10K). Search for "We operate our business in multiple operating segments. Google is our only reportable segment. None of our other segments meet the quantitative thresholds to qualify as reportable segments" and "How we make money" (Source: https://www.sec.gov/Archives/edgar/data/1652044/000165204419000004/goog10-kq42018.htm https://www.sec.gov/Archives/edgar/data/1652044/000165204419... )
- jjeaff 8y agoIt's kind of amazing that after all this time, they haven't created anything worth reporting outside of the add business.
- pfortuny 8y agoIn any other area that would be a red flag of “money laundering”. I am not accusing them of it. Just stating facts.
- SquareWheel 8y agoYoutube, maps, phones?
- jjeaff 8y agoYoutube - money loser Maps - money loser (but we will see after their recent huge price increases shake out) Phones - money loser. they are selling fewer phones annually than apple sells in a week.
- SquareWheel 8y agoIs Youtube really a money loser? I thought they'd turned it profitable years ago. Maps - in flux like you said. Phones are more than hardware sales. They also run an app store and license their own ecosystem.
- JetSpiegel 8y agoAcquired, acquired, acquired.
- SquareWheel 8y agoOriginally, perhaps. But in the last ten years how many times have these platforms been rewritten? Hosted services like Drive, Photos, and GSuite are also entirely in-house.