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> I have no idea what Google's dependence on advertising income Over 80% of Google's revenues are from advertising [0] Also, I can't find a source for it now,

by spaceman_2020 4y ago

> I have no idea what Google's dependence on advertising income Over 80% of Google's revenues are from advertising [0] Also, I can't find a source for it now, but I remember reading from a trusted industry journalist that roughly 25% of this advertising revenue is from startups and high-growth businesses. Seems too high to me, but I would expect at least 10% to be from startups. 0: https://www.statista.com/statistics/1093781/distribution-of-googles-revenues-by-segment/ https://www.statista.com/statistics/1093781/distribution-of-...

Retric 4y ago
Investing in stuff like self driving cars should be independent of current market conditions due to the size of their war chest. The profitable parts of the business are so profitable that would would take massive drops in advertising to really impact the bottom line.
- spaceman_2020 4y ago
  That's been true for every big company that faded away into obscurity. Or at least lost its erstwhile dominance. They usually have a product or division that does so well that it completely dominates the organization. Every part of the business becomes designed, organically or intentionally, to support this division. Innovation falters and new trends catch the incumbent off guard. While its not even close to dire straits for Google yet, the Gen-Z shift away from search is clearly a red flag and a sign that there's an entirely new trend that has caught Google off guard. Luckily they have YouTube, otherwise I'd be way more bearish on Google's future. Text-based search isn't going to grow by leaps and bounds, at least not in developed markets.
  - Retric 4y ago
    Google seems fairly diversified compared to many large companies. At least if you separate Search, YouTube, and other web properties from AdWords. Android and Chromebook is largely self sufficient via the play store, it’s really just Chrome that’s designed to support the rest of the business. https://fourweekmba.com/google-subsidiaries/ https://fourweekmba.com/google-subsidiaries/
    - spaceman_2020 4y ago
      None of them really make any money. At least not anywhere close to the scale that could justify a $2T valuation.
      - deleted 4y ago
        [deleted]
      - Retric 4y ago
        It’s 1.4T with a 20.5 P/E ratio and 0.12T in just cash in hand. Considering their past growth curve that really looks undervalued. https://www.statista.com/statistics/266206/googles-annual-global-revenue/ https://www.statista.com/statistics/266206/googles-annual-gl... Anyway take away any single element and it’s still a 1T dollar company, it’s not like search needs Ad Words they could use a different advertising network.
  - mertd 4y ago
    Gen-Z doesn't use search is a weird argument to me. They are teenagers. Of course they won't do anything useful online. Their behavior should change once they enter adulthood. They'll need plumbers too and no they won't hire them through TikTok.

Retric 4y ago

Investing in stuff like self driving cars should be independent of current market conditions due to the size of their war chest. The profitable parts of the business are so profitable that would would take massive drops in advertising to really impact the bottom line.

spaceman_2020 4y ago
That's been true for every big company that faded away into obscurity. Or at least lost its erstwhile dominance. They usually have a product or division that does so well that it completely dominates the organization. Every part of the business becomes designed, organically or intentionally, to support this division. Innovation falters and new trends catch the incumbent off guard. While its not even close to dire straits for Google yet, the Gen-Z shift away from search is clearly a red flag and a sign that there's an entirely new trend that has caught Google off guard. Luckily they have YouTube, otherwise I'd be way more bearish on Google's future. Text-based search isn't going to grow by leaps and bounds, at least not in developed markets.
- Retric 4y ago
  Google seems fairly diversified compared to many large companies. At least if you separate Search, YouTube, and other web properties from AdWords. Android and Chromebook is largely self sufficient via the play store, it’s really just Chrome that’s designed to support the rest of the business. https://fourweekmba.com/google-subsidiaries/ https://fourweekmba.com/google-subsidiaries/
  - spaceman_2020 4y ago
    None of them really make any money. At least not anywhere close to the scale that could justify a $2T valuation.
    - deleted 4y ago
      [deleted]
    - Retric 4y ago
      It’s 1.4T with a 20.5 P/E ratio and 0.12T in just cash in hand. Considering their past growth curve that really looks undervalued. https://www.statista.com/statistics/266206/googles-annual-global-revenue/ https://www.statista.com/statistics/266206/googles-annual-gl... Anyway take away any single element and it’s still a 1T dollar company, it’s not like search needs Ad Words they could use a different advertising network.
- mertd 4y ago
  Gen-Z doesn't use search is a weird argument to me. They are teenagers. Of course they won't do anything useful online. Their behavior should change once they enter adulthood. They'll need plumbers too and no they won't hire them through TikTok.