[QUOTE=bitonti]are they or are they not recording profit? BB asked about positive cash flow, how would you answer the question? did you read the link? or are you just f--king with me?[/QUOTE]
99% of google's revenue comes from text ads (we all know what they look like) and those numbers are screwy. Unmentioned in that light article is:
- click fraud: savvy web entities build botfarms, drive traffic to them (and can fake traffic) and use computer programs to click the ads. (Pay-Per-Click is where an advertiser, like JetsJerseysOnline.com pays an amount, determined by auctioning the highest price for most prominent display) This delivers revenue to be split down the middle, half to website, half to Google.
Google, the law, the advertisers - none can regulate this. Advertisers are getting wiser, slowly, but are certainly growing wary of PPC advertising. Also, in a time when online advertising is in an extended boom, PPC totals are off (but Google's search share is growing at the same time - too bad that is a free service)
Google launched a beta version of a CPA, click-per-action. This is advantageous to the advertiser, because they pay only when that person who clicks the JetsJerseysOnline.com ad does something like sign up for a newsletter or even actually buys something. That is measurability and control to the advertiser, something an agency or a webpublisher (jetsinsider would be an example of a web publisher) is loathe to hand over.
Google wouldn't be entering these new phases if an end to the gravy train wasn't in sight, in my opinion. Still an amazing company, but that stock has a lot more downside than up.
[QUOTE=bitonti]i agree the stock is overvalued, but he asked about profits and the last time i checked, google is raking it in[/QUOTE]
Have you seen the largesse? I had lunch at their new NYC digs. Besides the obvious (wishing I worked there) I was shocked at the workplace. It's la-la land. One inevitability is responsibility to the shareholder once the a wheel comes off the wagon. Morgan Stanley makes zillions, yet makes its rank and file buy crappy coffee from vending machines. Citibank treats employees as chips to be discarded to please institutional share holders. Google, in addition to mind-bending benefits, provides scooters for people to go from station to station. Faggy, yet amusing. But holy smokes, will that fluff end.
google is only as good as the people it attracts - there are no goods that will sell themselves, that's why they pamper their workers, they are attracting the best and brightest. the other companies you list don't necessarily have to take those steps.
again please read the link it will explain why the stock is priced so high, they literally have the most efficient business model in the history of business models.
[QUOTE=bitonti]google is only as good as the people it attracts - there are no goods that will sell themselves, that's why they pamper their workers, they are attracting the best and brightest. the other companies you list don't necessarily have to take those steps.
again please read the link it will explain why the stock is priced so high, they literally have the most efficient business model in the history of business models.[/QUOTE]
Google keeps hordes of slackers on its payroll to keep them from working elsewhere, that's why they are so selective (on schooling and educational matters, they're playing the numbers and don't care if you're talented or an exceptional entrepreneur) with the hiring of engineers.
It cannot and will not last. And when it falters, no worries, everyone who's anyone in Google made tons of dough. My advice is for anyone who can, to work there, and investors to look elsewhere.