Google Profitability Debate
The cluster discusses Google's heavy reliance on ad revenue, its profit-driven business decisions, acquisitions, and whether non-core initiatives are justified despite lacking immediate profitability.
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Are you trying to argue that google products are not profitable?
Google is a money company. They'll do what they can to make money.
It's not about belief really, it's about necessity. At google it basically rains ad money 24/7, that plus backbone internet traffic is where the vast majority of their money comes from, and it's a ton of money. For everything else it doesn't matter if it's successful as a business or not. In fact, the best case scenario is mediocrity and barely breaking even in terms of costs. Because that means there are no consequences, no bigger implications, no expectations for
It's silly to assume that Google has no aspirations beyond their current business. Ad revenue pays for their dreams...
Thought experiment: a company buying google (10, 20, 50 years hence) would be much bigger and may not care about tiny revenue streams.
As 90% of google revenues, they should worry about comments like this. Their arrogance is killing their golden egg.
I reckon Google is holding back more because there’s no way to moentize this to the tune of $150B/year.No initiative can get implemented at a large publicly traded company if it doesn’t contribute to the bottomline in some meaningful way eventually. And this thing might actually hurt the bottomline. No bueno.
Google has 15 B in cash. Every year they make another 8 B in cash. 99% of the revenue for Google comes from Advertising. I think Google has realized what everyone else knows...it's time to just buy random stuff that makes more money.
This is like saying Google isn’t extremely profit-driven because we don’t pay them.
Google don't have to produce profit now. Remember that they didn't profit from search or ads for a long time.What they have to do is ensure no one else profits from some research, and to have a way of profiting in the long term. That is a lot easier to work out once something is successful, you know how people use it and it has become somewhat indispensable to users.