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Yes, it is completely unreasonable. $12B represents a far more significant sum to AA than it does to Google. - Unlike AA, Google has enough cash on hand to cov
by eberkund 6y ago
Yes, it is completely unreasonable. $12B represents a far more significant sum to AA than it does to Google.
- Unlike AA, Google has enough cash on hand to cover expenses for close to a year
- Unlike AA, the service Google provides is not commoditized and highly profitable
- Google's market cap is 100x that of AA
- Unlike AA, Google's services are not highly susceptible to disruption by things like fossil fuel prices, terrorist attacks, politics and global pandemics
- londons_explore 6y ago> - Unlike AA, Google's services are not highly susceptible to disruption by things like ... Advertising is actually one of the first things to be scaled back in an uncertain economy, and due to the way most of Google's advertising business is based on auction based pricing, if 1% of companies pull their ads, Google will lose more than 1% of revenue, since prices also fall, so there is an amplification effect. Google is still in a much better position than AA though.