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Big tech companies like Google and Facebook are seeing record usage (i.e. increased costs) at exactly the same time that advertising revenue is plunging. YouTu
by CydeWeys 7y ago
Big tech companies like Google and Facebook are seeing record usage (i.e. increased costs) at exactly the same time that advertising revenue is plunging. YouTube watches are at record highs while pays per view might be at record lows. This just means that the expenses go up even as revenue falls. It's not a good thing for profitability.
- nostrademons 7y agoThat's why they've stockpiled $105B and $55B in cash respectively, though. Facebook could run the company for 1.5 years if their revenue went to zero; Google could run it for 2 years. They know how the business works and position themselves to weather and profit from downturns. Some weaker shareholders may sell if they're only interested in quarterly numbers, but in the long term their revenues go back up to what their userbase justifies.