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Google has entered into a phase where short term profits outweigh long term growth. If you're a startup, don't do this. Maximizing the growth exponent does a l
by grobbyy 2y ago
Google has entered into a phase where short term profits outweigh long term growth.
If you're a startup, don't do this. Maximizing the growth exponent does a lot more than tweaks on per-user revenue. Intentionally annoying users is bad business.
When companies do this, it's also good to look at PE ratios, since it suggests they don't anticipate growth.
- lkdfjlkdfjlg 2y ago> Google has entered into a phase where short term profits outweigh long term growth. I has entered this phase at least 10 years ago.
- pompino 2y agoIt might well be good for business, but I'm cheering that the slow erosion of trust with Google continues and leads to their demise in a decade or so. The cherry on the cake would be if we can get lawmakers with a backbone to put such companies in check.
- zeruch 2y ago"Google has entered into a phase where short term profits outweigh long term growth." Indeed. The question I have is does that mean it goes eventually the way of Microsoft/IBM, or the way of SGI/Computer Associates?
- grobbyy 2y agoI think Yahoo or HP would be the most likely candidates. HP is at about a fifth of it's peak market cap, largely as a result of a similar play. I'd short Google, but there's an old saying that markets can be irrational far longer than an individual wallet can sustain a short....
- banish-m4 2y agoThey're so generous for creating business opportunities for others.
- ilrwbwrkhv 2y agoThe classic this is what happens when you put a business school grad in charge of a tech business.
- lern_too_spel 2y agoHow does encouraging ad blocker usage lead to long term growth?
- column 2y agobait and switch, you let the users get used to the service without ads and find value then slam the ban hammer to make the whales switch to premium
- lern_too_spel 2y agoHow is that bait and switch not in Google's long term best interests?
- grobbyy 2y agoThis is a strawman. No one is suggesting Google should encourage anything. Openly user-hostile actions devalue brand and trust. That's doubly-true for power users who are thought leaders. If Walmart has store security shoot suspected shoplifters and unionizers with a 9mm, discontinuing that policy would not be encouraging unions or shoplifting.
- lern_too_spel 2y ago> No one is suggesting Google should encourage anything. This is a straw man. I obviously didn't mean that I thought you suggested that Google should explicitly tell people to use ad-blockers. Now tell me how not doing anything to discourage people from blocking YouTube ads supports Google's long term interests. Or tell me how they could discourage people from blocking their ads without "[devaluing] brand and trust."
- grobbyy 2y ago> Now tell me how not doing anything to discourage people from blocking YouTube ads supports Google's long term interests Google maintains a monopoly and their brand. Profits are entire the of percent lower by the few power users who use all blockers. Big-O profits remain similar. That contrasts with real competition, brand loss, or monopoly loss. That can lead to astronomically lower profits.