Google Doubles its Profits
WinEveryGame writes "Google just announced a very strong quarter. The internet search engine said it had net income of $721m, or $2.33 per diluted share, up from $343m a year earlier. Wall Street had expected earnings of $1.94 per share. Earlier this week Yahoo had announced lower than expected earnings."
Seriously guys, thanks for playing.
Net income != profits
Seriously, it's nice to see a company that values its engineers doing so well.
--- "We've always been at war with Eastasia."
I sure would be modded down for this.. but just can't help wondering how many chairs are being thrown at Microsoft after this announcement....
The folks at Google never cease to amaze us!
The bring out new programs and almost ever hit the mark, with a great rate of success, but without hesitating to remove from the net their fiascos, like that Google Accelerator thing.
Just please don't be sooo US-centric and release your goodies for all the world, for example, I'd love to throw out my paypal account, but non-Americans are not able to log into Google CheckOut still!
--
Superb hosting 20GB Storage, 1_TB_ bandwidth, ssh, $7.95
And all this money comes from adwords? Does it bother anyone besides me that google has only one source of revenue? It's like a company that sells only one product ... if demand for their product decreases the company dies. For example consider this possible situation: Microsoft bundles an adblocker with IE, automatically turned on, that blocks, among other things, google's adwords. Even if google sues MS could keep it in court long enough for google to go under. Scary isn't it?
Philosophy.
was due to one-time gains, such as the sale of stock in BAIDU.com. That's why the stock was down in after hours. This nonsense of beating estimates by a huge amount is a giant Wall Street smokescreen. Non-recurring things factored out, Google barely beat estimates. Growth is slowing, the CEO himself said that. I imagine more money is going to be pumped out of this in the future (admittedly YHOO had a negative effect on GOOG and BIDU).
Do not downmod posts "overrated" simply because you disagree with them.
Does somebody else find it funny, how the web sites have become verbs. Look at the button 'Google Slashdot'. Imagine 'Slashdot Google' or 'Slashdot University of California' buttons to kill the web sites.
hilarious
$2.33 earnings per share, at a cost of $387 per share. That's a return of 0.6% per year on your investment so at this rate it will take about 166 years to get your investment back in earned value.
Yep, these Internet stocks sure are amazing value for money.
Simon hibbs
Is it the value of the engineers?
or is the value of a natural monopoly in a truely open market as opposed to a tied monopoly in closed market such as the MS's?
Do not get me wrong. Google's engineering is what got them to this size. After all, Alta Vista, Yahoo and MS held 95% of the market when Google started. It is Googles superior ideas that enabled them to beat these other companies.
I prefer the "u" in honour as it seems to be missing these days.
Google had a net income of $721 million, according to TFA. Microsoft's net income last quarter was $2.83 billion in their last report.
So, Microsoft still have a far greater net income than Google. Still, Google is rising fast. Will we someday see Google's net income overtake that of Microsoft, I wonder?
Of course the funny thing is, if Google's stock value ever lowered to match their actual money flow, people would see it as a "drop" in value and see it as a massively negative sign.
Stupid stock market
I had a yahoo webmail account, the new webmail beta needs new windows or mac, since i have neither webmail beta is a no go. Explain to me why webmail needs windows or mac binaries - spyware ?
Geocities trashed my webspace too after a couple of years no explaination about that either
What can we learn from yahoo ?
I pay google around 14000$ per month for adwords. I pay yahoo about $500. In both places, I try to buy as much advertising as I possibly can. Yahoo simply doesnt deliver the clicks, and in fact the clicks coming from Yahoo have been FALLING if anything. Pathetic.
I wish I could come up with that kind of "bad business model"
Seriously though your "possible situation" is 100% laughable. If MS released such a browser it would take a long time to seriously penetrate the market and there would be strong resistance not just from Google. If the browser won't show ads then 99% of sites out there would refuse to serve it content.
Google will certainly face challenges but to suggest that adwords revenue will simply disappear is absurd.
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Remember when they tried to introduce smart tags? They only aimed to gain MS revenue, not directly stop content providers from getting it. Content providers simply wouldn't stand for it. If MS releases a browser like that then a lot of websites will choose not to serve it content.
Boffoonery - downloadable Comedy Benefit for Bletchley Park
Why is news about google stock on the site? Since search was down, I didn't get to see if slashdot posted news about Yahoo's stock dropping 22% in a day, the largest single drop ever, on Wed. Either make a customized finance.slashdot.org (which I'm sure a lot of slashdotters would be quite happy about, focusing on the financial aspects of certain tech companies and F/OSS finances) or don't report news at all.
But please, none of this "Logo Toilet Paper to replace Charmin at the Googleplex" news. I find slashdot diverging from its focus when it reports minutia about google. Either report all minutia, or report none, and especially don't bias toward certain companies (Yahoo, an equally important company, isn't nearly as well followed?)
Do not downmod posts "overrated" simply because you disagree with them.
Oooh look, recursion!
Since we are talking about the future of Google... How about Google OS version 1.0. Now I am sure that would be something awesome. With the amount of revenue they have, it's not that far-fetched to think they aren't capable of creating their very own OS. Besides, with the amount of computers we have out here in the world, there really are only 3 operating systems to choose from. Doesn't really seem like that many, considering the amount of cars of types of televisions there is out there.
look at Amazon-- from what I understand (ianastockbroker) their actual inventory itself may not even turn a profit at all, but third party sales and their e-commerce licensing (to Toys-R-Us, Target, etc) makes them more than profitable. this is possible because they have the infrastructure built. when it comes down to it, people like to click on ads and buy stuff. not you, not me, but a percentage of people do. enough to make the ad game profitable, as seen by advertising in other fields (tv, billboards, hell even spam.. someone is clicking on all those links to buy v1agr4 or you and I wouldn't get so much spam).
..as an aside, the interesting thing [for me] to ponder, is whether google will ever adapt their business model to gain profit directly from user subscriptions for various services, or whether it will always remain ad-revenue driven
google is in the process of widely diversifying, and even if microsoft DID roll out a universal adblocker that was installed by default, I can envision several scenarios that google adwords infrastructure would still be useful for. how about when google unveils their free natiowide wifi metropolitan internet access.. of course it's free in exchange for using Gbrowser with AdViewing enabled.
I use gmaps on my BlackBerry8700 all the time.. google's success is all about creating functional/useful utilities (email, mapping, search engine, blogger, gcheckout, whatever) and then stuffing ads in there. The fundamental question is not whether MS can block them, it's whether ads can be profitable, and I believe the answer is yes.
I am Jack's complete lack of surprise.
Yahoo's employees googling for better jobs.
---southpaw
Richard Brandt argues with passion that Google will eclipse Microsoft. The idea is that all the reasons why Microsoft beat everybody else don't apply to Google. I disagree, however, because I don't see Google's advantage as having much sustainability.
...
On the other hand, I was fairly late to realizing how sustainable Microsoft's advantage would prove, back in my stock analyst days, so do consider the source
To err is human. To forgive is good system design.
1. ???
2. ???
3. Profit!
GAAH! MY PRINTER IS ON FIRE!!! PUT IT OUT! PUT IT OUT!
And how much of that profit is due to AdSense click fraud?
I have to admit I never understood what the fuss over the Google Accelerator was. Wasn't it just a proxy server? There are loads of proxy servers already, and I don't see people complaining about those...
Even so Google managed to deflect the anger after a mistake. Sony, Microsoft, etc. seem to be less succesful at doing this.
I'll probably be modded down for this...
That's why they [censored] the chinese.
"Waste not one watt!" - CZ
Comment removed based on user account deletion
As much as I love to use Google [the search engine mostly] I am sick of this 'Beta' thing.
:-)
Everything that comes out of any company is now branded as 'Beta' Software / websites. The new Microsoft Live crap, Yahoo is branding their crap as Beta... I'm sick of it.
Now, perhaps they could hire Tom Cruise to utilize his witchcraft to somehow get Beta as a trademark -- then they could lay on the royalty fee's on any company using it for commerical use -- I'm sure that would quadruple their profits!
By the way -- did I mention how much I hate the word 'Beta'?
Oh! Revenues dropped today! google has been slashdotted!
I'm holding my breath waiting until Google, the holy virgin and the axis of all goodness, donates a fraction of their profit comparable to that contributed by the much hated Microsoft.
has the quality of Google dropped this past year?
Seriously, how many of you still use the basic Google search function, and find results you want rather than Google Bombed sites and link farms set up by a hundred SEOs trying to make it to the top of the search results.
Yes, this has always been a problem looking for p0rn, since they were, and always will be, ahead of the game, so you always has bullshit results to begin with, but now it has moved on to even basic searches for information, all by this SEO war of promising their clients "top results" even for bullshit not related to them.
YouStockIt - Education through Unorthodox Methods
'We can't have another Microsoft unless someone else is prepared to bend over and be the next IBM'
Microsoft is scared of Google because unlike them, google built up it's current powerbase through being better then everyone else, not through rushing to, and maintaining, a manopoly.
Of the two, Google's business model is the most stable.
Microsoft missed out on search completelly. They dislike google for having the market share they should 'rightly' have. However, if Microsofts vision was so good, why did MSN fail on it's first outing. No-one was interested in it, or at least not enough people. I tried it, I hated it.
It's a matter of corporate outlook. Googles vision simply suits the market better. They have a superior market share because of this, but not a monopoly. Microsoft are almost certainly going to try for a monopoly position in search, it's the only way they work. Have Google tried to shut down competition? Nope, they just beat them by simply being better.
Whether conciously or not, people like google because they are good at what they do, people like microsoft because they don't see any alternative. Many still don't realise there is an alternative in fact. I meet computer users who don't even know linux exists for example.
Microsoft aren't going anywhere soon, and they will remain powerful, albeit possibly changed. Alas for them they sat back and basked in manopoly while other, smaller companies and groups started out, exploiting the area's that microsoft were ingnoring, being Unix clones in X86 (linux/BSD), and Search.
Too late microsoft have woken up, and it is too late. All they can hope for now is to gain leverage in the corporate world through their installed base to bring in products that compete with google and Linux.
Their browser will remain default on most computers for the time being, but I can see other browsers being bundled as default soon. The old microsoft cudgle to prevent this isn't as powerful as it once was.
That number is just an educated guess at best. Taking that number seriously, as it was in the late 90's, is fool hardy. It's best to completely ignore that number. See this: A Random Walk Down Wall Street in case you haven't. Enjoy!
I'm happy to hear that Google is making a large amount of profit. In fact, I hope they make even more profit.
.ss
I can think of many things that Google has done:
a search engine that outperforms all others.
financial support for firefox
google earth
gmail (webmail that doesn't suck)
picassa
google maps
google summer of code supporting my favorite OSS projects
google calendar
kicking Microsoft's
I am hoping google in the next year will come out with more products, support more OSS, and do even greater things. Oh and fix google browser sync too!
Google can finally afford that new vending machine in the lobby.
It's just rarely used in the present tense.
:P
'Slashdotted' is a very common term and is used frequently. Same with 'dug', although 'dug of course was always a verb
Sometimes everybody wants to see the glass as half empty. Yahoo had a second quarter profit of $163 million. It was lowered than expected and lower than last year's $755 million for the same time period.
Well, there's spam egg sausage and spam, that's not got much spam in it.
I've been a long-time fan (and a stock-holder) of the company. Their software-quality has slipped noticably during the years. Their web-pages contain horribly broken HTML at times, with the bug existing for many months until it finaly goes away and the same browser no longer has a problem.
Their "message boards" (attached to each article) are some times either completely inaccessible, or have features missing — the "recommendations", for example, were broken for a couple of weeks recently. Someone must've been on vacation...
The stock dropped over 20% two days ago, because their software-writing was not fast enough for the new advertising model(s). They must do something, or Google will eat them alive...
In Soviet Washington the swamp drains you.
... ah the hell with it.
Seastead this.
Who do you think runs Slashdot, robots? No, its run by humans. All humans have favorites and biases and beloved underdogs. So I really don't think your request is going to go very far. Its focus is "News for Nerds, Stuff that Matters". Google is nerdy and matters. Anything they do is nerdy and matters.
Understand?
Mac OS X and Windows XP working side by side to fight back the night.
I am not surprised. Every second page I access after a google search, is just a scraped result, full of google ads placed in a tricky confusing way.
...
..
Stuffed so bad, you really have to figure it out if you are clicking on an ad or an other link.
Actually most of the pages that come up are teh definition of "excessive advertising", and supposedly google policy forbids that for adsense and adwords clients.... but they do not seem to enforce it too much
oh well, i am using a lot of yahoo, and sometimes even msn, or getting more and more into mixed results such as dogpile, or alternatives, such as ASK
Meanwhile, Amnesty International has placed Google and other biggies on their list of Internet companies who are helping the oppressors and not the opressed. (http://news.amnesty.org/index/ENGACT300162006)
Of course the story was spiked by the editors of a particular nerd news site.
Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong fix.
Heck, I'm waiting for Google OS/2!
From the NY Times:
I believe the Baidu sale yielded like $60 million.Personally, I don't care what Wall Street expects. If growth goes from 80% to 70% to 60% to 50%, our P/E will be like 10 (at $400/share), and we'll still be growing at a really high rate.
Do the math, and forget about projections. If you take the $2.33 GAAP number, and look at the run rate (this would be a middle ground between ttm and projected), $2.33 * 4 = 9.32, which gives GOOG a 43 P/E ratio.
How does that make GOOG way overvalued?
Microsoft makes money by selling software, which might actually be of use for people.
Google makes money by data-mining, information hogging and add selling, which by itself is the incarnation of all that is evil about the web going commercial.
But somehow,google is the one thats "not evil". I guess marketing works.
HI O WISE PRINCE. WHT TOOK U SO DAM LONG?
I have virtually every adserver blocked from my browser and sites mysteriously still send me content.
I saw it coming a miles away. I guess I should have had money. That would have helped.
Baaaa
I want profit to be used for R&D not some tax evading scheme. Which is exactly why MS does it.
to read and archive anything and everything about Google. It has all the news and more and a huge GOOGLE fan base. Wonder if they are related?