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Terrible analysis. > Over the past four years, Google’s annual revenue growth has plummeted from 30% to 10% while expenses have ballooned from 69% to 75% of sa
by sowhatquestion 11y ago
Terrible analysis.
> Over the past four years, Google’s annual revenue growth has plummeted from 30% to 10% while expenses have ballooned from 69% to 75% of sales. And 90% of its $66 billion in sales still come from online advertising. That dependence on ad revenue is becoming a real problem.
Of course Google needs to diversify. But Page and Brin don't know what business(es) it will diversify into because no one knows. That's as difficult to predict as the direction of technology itself. Google is pursuing the unique advantages it has at this moment: (1) an ability to attract top engineering talent and (2) a big ol' pile of cash. Unlike Apple, Google is actually plowing that cash into forward-thinking R&D beyond the next iteration of their existing product (no disrespect to Apple, I mean that more as a lament than a criticism).
Early results from the self-driving car and Project Loon have been very promising, to say the least. Android is one of the most popular operating systems in the world, and puts a Google search bar one tap away from hundreds of millions of people. Chrome OS laptops are among Amazon's best selling models, and they too drive search traffic. Microsoft has been emulating Google's online productivity app strategy for a few years now.
Seriously, what is the problem here? Since when does Amazon get a pass for diversifying and playing the long game, but not Google?