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YouTube is a net loss ? Where is that coming from ? It brought in $6BN revenue just in Q1 [1]. [1] https://abc.xyz/investor/static/pdf/2021Q1_alphabet_earnings

YouTube is a net loss ? Where is that coming from ? It brought in $6BN revenue just in Q1 [1]. [1] https://abc.xyz/investor/static/pdf/2021Q1_alphabet_earnings_release.pdf?cache=0cd3d78 https://abc.xyz/investor/static/pdf/2021Q1_alphabet_earnings...

scarface74 5y ago
“Revenue” is not the same as “profit” https://www.cnbc.com/2020/02/03/google-still-isnt-telling-us-about-youtube-and-cloud-profits.html https://www.cnbc.com/2020/02/03/google-still-isnt-telling-us...
- utopcell 5y ago
  The question stands: Where is the "net loss" statement coming from ?
  - scarface74 5y ago
    Whether it’s a net loss or barely profitable, it still doesn’t move the needle as far as Google’s income. Even if it did - it is still mostly search advertising. That’s not diversification.
    - utopcell 5y ago
      Search revenue was $31,879 billion in Q1 and YT revenue was $6,005 billion. It doesn't seem like you're paying attention.
      - scarface74 5y ago
        You’re still conflating “profit” with “revenue”. No one is doubting that YouTube’s revenue is substantial. There is doubt that it’s profit is substantial. If it isn’t contributing any meaningful profit to Google’s bottom line, it isn’t successful.
        mmmmmbop 5y ago
        Would you say that Uber, Lyft, Spotify, and Tesla are all unsuccessful companies?
        scarface74 5y ago
        Is this really a serious question? The success of a for profit company is defined by “profitability”. Spotify - like Jobs said about DropBox, they are a feature not a product. Most of their revenue goes back to the record labels. Their gross margins are slim Uber - is losing billions and it’s unit economics isn’t good. Lyft - See Uber Tesla - it’s “profits” aren’t from selling cars. https://www.cnn.com/2021/01/31/investing/tesla-profitability/index.html https://www.cnn.com/2021/01/31/investing/tesla-profitability...
        mmmmmbop 5y ago
        It was indeed a serious question. Thank you for your answer. I disagree with the notion that the success of a for-profit company is solely defined as "profitability". Factors such as growth or value are also often cited as success criteria. I couldn't find literature supporting your statement that profitability is the only measure of company success. Intuitively, it also seems wrong to me to claim that a children's lemonade stand netting $10 in profit is a more successful business than Tesla.
        scarface74 5y ago
        How can a company be sustainable if it continuously loses more money than it brings in? If I sold a bunch of dollars for 95 cents, my revenue would be astronomical. But does that make it a sound business model? Which is a better business model? An Indy writer with 3000+ people charging $100 a year for a newsletter (Ben Thompson/Stratechery) or a multi million dollar news organization employing dozens of people with higher revenue losing millions per quarter?
        utopcell 5y ago
    - ec109685 5y ago
      Where does the doubt about its profitability come from?
      - scarface74 5y ago
        From most analysts. Once they pay creators, bandwidth and storage.

scarface74 5y ago

“Revenue” is not the same as “profit” https://www.cnbc.com/2020/02/03/google-still-isnt-telling-us-about-youtube-and-cloud-profits.html https://www.cnbc.com/2020/02/03/google-still-isnt-telling-us...

utopcell 5y ago
The question stands: Where is the "net loss" statement coming from ?
- scarface74 5y ago
  Whether it’s a net loss or barely profitable, it still doesn’t move the needle as far as Google’s income. Even if it did - it is still mostly search advertising. That’s not diversification.
  - utopcell 5y ago
    Search revenue was $31,879 billion in Q1 and YT revenue was $6,005 billion. It doesn't seem like you're paying attention.
    - scarface74 5y ago
      You’re still conflating “profit” with “revenue”. No one is doubting that YouTube’s revenue is substantial. There is doubt that it’s profit is substantial. If it isn’t contributing any meaningful profit to Google’s bottom line, it isn’t successful.
      - mmmmmbop 5y ago
        Would you say that Uber, Lyft, Spotify, and Tesla are all unsuccessful companies?
        scarface74 5y ago
        Is this really a serious question? The success of a for profit company is defined by “profitability”. Spotify - like Jobs said about DropBox, they are a feature not a product. Most of their revenue goes back to the record labels. Their gross margins are slim Uber - is losing billions and it’s unit economics isn’t good. Lyft - See Uber Tesla - it’s “profits” aren’t from selling cars. https://www.cnn.com/2021/01/31/investing/tesla-profitability/index.html https://www.cnn.com/2021/01/31/investing/tesla-profitability...
        mmmmmbop 5y ago
        It was indeed a serious question. Thank you for your answer. I disagree with the notion that the success of a for-profit company is solely defined as "profitability". Factors such as growth or value are also often cited as success criteria. I couldn't find literature supporting your statement that profitability is the only measure of company success. Intuitively, it also seems wrong to me to claim that a children's lemonade stand netting $10 in profit is a more successful business than Tesla.
        scarface74 5y ago
        How can a company be sustainable if it continuously loses more money than it brings in? If I sold a bunch of dollars for 95 cents, my revenue would be astronomical. But does that make it a sound business model? Which is a better business model? An Indy writer with 3000+ people charging $100 a year for a newsletter (Ben Thompson/Stratechery) or a multi million dollar news organization employing dozens of people with higher revenue losing millions per quarter?
        utopcell 5y ago
  - ec109685 5y ago
    Where does the doubt about its profitability come from?
    - scarface74 5y ago
      From most analysts. Once they pay creators, bandwidth and storage.