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Alphabet Announces Fourth Quarter and Fiscal Year 2021 Results
- owlninja 5y agoA 20:1 stock split as well.
- subsubzero 5y agoThat will price shares back to their IPO level in 2004, $130/140 a share.
- xyzzyz 5y agoDon’t forget there already was one 2:1 stock split in 2014 or so.
- cobookman 5y agoWhich makes options contracts cheaper, and it cheaper for retail to open shorts against them.
- panarky 5y agoWho cares if options contracts are expensive, you just trade fewer of them.
- anonporridge 5y agoAlso cheaper to open longs.
- ppg677 5y agoI wonder if there is a psychological effect that could push more stock growth?
- ra7 5y agoGoing by examples in the last year (AAPL and TSLA), it seems very likely.
- throwaway287391 5y agoIt's not only psychological -- for example, a lot of brokerages don't offer fractional shares, so a split allows some retail investors to invest who couldn't afford to before. (Although that almost certainly has a smaller effect than the options contracts etc mentioned in sibling threads.)
- bduerst 5y agoIncreased liquidity. Also option trading is usually in 100 share units, meaning retail investors can now afford more options (e.g. $15,000 vs $300,000 a unit).
- kshacker 5y agoAnecdote warning: This is one reason I have not been able to buy/sell google options. (I did around Brexit when google was 650 or so, but not since). Even a single contract is a massive risk for a layman portfolio like mine. 1/20 will imply I will definitely attempt to trade this.
- mpalczewski 5y agoThis makes the stock price in line with other dow jones stocks, something that Apple did right before it was included in the Dow average. The Dow unlike other indices does not weight by market cap or anything like that it literally uses the stock prices.
- deleted 5y ago[deleted]
- endisneigh 5y agoMan, Google’s poor search results sure do pay well /s. I wonder if Google will make any big acquisitions this year
- NotAnOtter 5y agoGoogle is many things, but poor search results is not one of them. Still the best search engine around, being too good is the problem most people have
- sixothree 5y agoNot in my day-to-day work. The deterioration is very clear.
- endisneigh 5y agohow so?
- jeffbee 5y agoNot sure if sarcasm or not. These results demonstrate that the HN zeitgeist about the utility of Google is not related to its actual utility to the public at large.
- anonporridge 5y agoMost people want the lowest common denominator information. They want to know what most other people think and want. HN and their desire for niche information is just not representative of the average human.
- deleted 5y ago[deleted]
- cobookman 5y agoTechnically, revenue decline would be a lagging indicator of poor search results and poor user experience. But agreed.
- purple_ferret 5y agoReally amazing how much money they keep squeezing out search But it's basically impossible to escape the ads on it these days, so it's not surprising.
- tryptophan 5y ago>t it's basically impossible to escape the ads on it these days, so it's not surprising ublock origin seems to do fine. Unless you are suggesting that the ad-ladden SEO'd pages are their real product?
- purple_ferret 5y agoEven with ublock I'll stumble into a google ad for when I search for something like a restaurant or hotel
- iqanq 5y agoNot my experience.
- missedthecue 5y agoI just tested "macbook pro for sale" without and without ublock and they disappeared when I turned it on. Are you able to produce an ad in a search result right now with ublock enabled?
- daitangio 5y agoAlso PiHole is a great tool. I suggest it it you Walt a very good ads shield :)
- ProllyInfamous 5y agoI have used a PiHole ever since I learned that LittleSnitch resolves DNS queries (to IP) before the dialog prompts whether to Allow/Deny a connection to the unlisted host. It is an added bonus that I can route my entire subnet to the local PiHole, which prevents rogue software/OS/devices/phones from initiating undesired connections. If you know how to make a few simple IPfilter rules, you can even stop hard-coded devices (e.g. smart TVs) from phoning home with internal DNS IP addresses — all you have to do is capture all DNS queries, IPs included. Simply blocking pagead2.google.com and googlesyndicate.com will remove 50%+ of website advertising. ReGex rules allow for ads.* (etc.), and these rules apply on your entire local network. For an added bonus, you can then use your local PiHole to resolve DNS queries remotely (e.g. from your phone) — just all around an incredible product! /r/PiHole
- kevan 5y ago>adjusted the estimated useful life of our servers from three years to four years and the estimated useful life of certain network equipment from three years to five years Another sign of the slowing advancement in CPU power/performance?
- jeffbee 5y agoThe 3-year figure was always totally unhinged from the actual useful life of cloud servers. As evidence, please refer to the fact that on EC2 you can still provision a C4 instance with a Haswell CPU made in 2014. In GCE you can still provision an N1 instance with a Sandy Bridge CPU from 2012.
- kevan 5y agoDisclaimer: I'm at Amazon but not in AWS Fair, I was thinking of this in the non-cloud perspective where efficiency improvements can push you to upgrade even if the hardware still works. In cloud provider mode it makes sense to keep it around as long as it still works and it's not too annoying to run. It doesn't really matter how (in)efficient the hardware is because you set the pricing to keep it profitable as long as someone's willing to buy it.
- deleted 5y ago[deleted]
- deltree7 5y agoIt's not that simple. Every rack that is sitting there is an opportunity cost for another efficient or more profitable rack. So, there has to be smart calculation to make the keep/upgrade decision
- yazaddaruvala 5y agoDisclaimer: Previously worked at Amazon but not AWS. You would typically be right. However, the saying as of 2013 was "At any given second there is always at-least one new computer being plugged in, to support S3's growth." > Every rack that is sitting there is an opportunity cost for another efficient or more profitable rack. If AWS wasn't already supply side constrained on new hardware to fill new AWS data centers, you would be correct. However, they do not yet need to re-use those old racks, instead they are accelerating how many new racks they are building.
- maattdd 5y agoGoogle Cloud revenue is only up 30% YoY, which seems really low considering the marketing and the focus on it (and the growth of the competitors).
- strstr 5y agoNot sure if this is really much different, but superficially it looks like its up ~45% (5.5 billion from 3.8)
- onlyrealcuzzo 5y agoTo put that into perspective - if the rate continues for 4 years (doesn't seem that unbelievable) - revenue would be ~$24Bn - which is close to FB currently...
- anonporridge 5y agoAnyone have handy YoY growth numbers for AWS and Azure?
- jedberg 5y agoAWS was 39% at their last report.
- blakesterz 5y agoI don't know how many others think like I do, but I'd never use GCP. No one will ever convince me that it'll be around in 5 years. I just don't trust them to keep anything they made in the past decade or so going long term. Call me paranoid, call me whatever you want, but I just do not trust their ability to focus on anything anymore.
- losteric 5y agoGCP is a profit center and diversifies the business, why would Alphabet deprecate it?
- carlycue 5y agoTo put Alphabets revenue this quarter ($75 billion) in perspective: Microsoft: $51.7 billion Apple: $123.9 billion.
- tech-historian 5y agoMore perspective. Apple: founded in 1976 (46 years old) Microsoft: 1975 (47 years old) Google: 1998 (24 years old)
- bluedino 5y agoMore perspective (estimates): Meta $33.4 billion Amazon $134 billion
- megablast 5y agoRevenue??
- mupuff1234 5y agoI think operating income is probably a better metric to look at to compare. Walmart has a higher revenue than all of the above (~140 billion)
- im3w1l 5y agoCan you explain why operating income is better and why you are bringing up walmart?
- mupuff1234 5y agoIt's gives a better understanding of what's the bottom line after expenses. You could have a ton of revenue, Walmart for example, but if you have razor thin margins that revenue won't necessarily translate into giant piles of money in the bank, which in the end is what most businesses are after.
- 5y ago
- brink 5y agoThe pandemic seems to have been very profitable for big tech, for both money and power.
- carlsborg 5y agoSummary: Full year 2021 revenue $257B, 41% year on year growth. Net income $76B, up from $40B yoy. Quarterly: Q4 of 2021 they made $75B revenue, most of it came from Google Search, $43B up from $31.9B in Q4 2020. Youtube $8.6B of ads, Google Network $9.3B from ads. Google cloud did $5B revenue for the quarter, up from $3.8B in Q4 2020. It lost $890m this quarter compared to $1.2B Q4 2020. "Other Services" did $8.1B revenue and "Other bets" did $181B They have ~$140B in cash and liquid investments.
- ksec 5y agoUp ~10% after market. Should be around 2T Market Cap now. Apple is 2.8T while M$ is 2.3T. I think I am very good at numbers, comparatively speaking. But these number is till mind boggling. It is hard to comprehend how and why they could continue to grow. With $140B cash while Android is still half polished. GCP not competing. And killing half a dozen random products and services from time to time.
- tester756 5y ago>and "Other bets" did $181B you're sure?
- throwaway0220 5y ago$181M, not B.
- oezi 5y agoI think your math on that €43B up is wrong. At least it would be strange if they more than doubled search from last year's Q4, but just grew 41%.
- jsnell 5y agoYou are misreading; it is not up by 43 but up to 43. (No math involved, the numbers are straight from the first table in the pdf)
- panarky 5y ago
- cbaleanu 5y agoPlease mark as [pdf]
- sidcool 5y agoIt's mind boggling to me that Google is still losing money on GCP. It's been years. And AWS and Azure are minting money. Any reason why?
- gpapilion 5y agoGoogle is buying business and is happier to give discounts(sustained use pricing for example).
- Jensson 5y agoAmazon and Microsoft uses AWS and Azure themselves. Google doesn't use GCP, the service you buy is not the service Google engineers use internally. This both means that GCP cannot bill the rest of Google to inflate their own numbers and that GCP likely are less battle tested since they don't have a huge internal customer.
- tonyedgecombe 5y agoAlso there seems to be a widespread perception among developers that Google will drop services on a whim. Whether it's true or not that has to have an impact on people signing up to their services.
- ripvanwinkle 5y agoAzure doesn't mint money. If you look closely at any numbers MSFT reports whenever Azure is part of the mix, the margins drop considerably though revenue growth jumps. I had looked closely at their reports about a year ago. Azure is usually bundled with some very profitable if stagnant pieces like Windows Server or SQL Server when reported on. You never see pure Azure numbers.
- joanfihu 5y agoI’m wondering if growth is just synthetic at this point. They can just add more ads regardless of user growth. There has been a noticeable increase in ads across all their products.
- paulpauper 5y agoThey don't even need growth. Their earnings and profit margins are high enough that they can deliver billions of dollars of value every quarter to shareholders absent of growth.
- qiskit 5y agoGrowth is primarily due to demand - by advertisers, not the users. Online ad spending increased during the pandemic and is expected to continue to grow throughout this decade. Advertisers flush with cash are looking to spend it online. And google, fb, etc are more than happy to oblige. Google is simply increasing the supply ( ads ) to meet the demand ( advertisers ). This sadly means we'll be seeing more and more ads online...
- riku_iki 5y ago> Growth is primarily due to demand - by advertisers, not the users. It is actually both, from q3 10k: Paid clicks change: 24% Cost-per-click change: 17%
- darkwizard42 5y agoAlso, the margins are getting better, through more ad sales and less costs (price per ad in a super rudimentary way is higher) see riku comment for more
- summerlight 5y agoThis is one of significant misconception for digital marketing. More ads doesn't necessarily mean more revenue since it's bound by total advertising budget. Let's assume an optimal ads market and you put more ads there without further optimization or budget, then there will be less auction pressure per ads (thus less CPM) and roughly similar revenue. For something like 40% YoY growth at Google's scale, you need to convince big advertisers to allocate more budgets.
- lvl100 5y agoIn terms of investments, I like Google the most out of the monopoly techs. Microsoft is my least favorite because they’re just a fund of loosely related technologies at this point.
- paulpauper 5y agoThis is the closest thing to investing in Renaissance Technologies. It's too bad there is not a way to get 2-3x leverage version of google. The CAGR since its IPO in 2004 is the same as Renaissance too. Rather than executing millions of trades, the profit is from millions of clicks. Like renaissance , massive statistical analysis is involved, such as tracking click patterns and optimizing the ads. There is no limit to how high this will go. More and more economic activity is being funneled into these dozen or so mega-tech companies, which is how they are able to grow annual revenues at 20-40%/year despite 3% GDP growth.
- skybrian 5y agoIt seems like there should be a limit to the ad market, though? Also, isn't increasing ad blindness a thing? (Even without ad blockers.)
- tonyedgecombe 5y agoI remember reading a paper from LSE that showed that advertising tended to crowd out investment in R&D and that in the long term increased advertising has a detrimental effect on the whole economy.
- potiuper 5y agoFNGO & FNGU
- paulpauper 5y agoonly has 10% exposure to google.
- timbeccue 5y agoMargin or options would give you leveraged exposure.
- paulpauper 5y agonot as good. margin has high borrow fees and path dependency. options are better but still has a lot of fees, slippage, and needs to be adjusted to target appropriate delta. a 3x fund would make it so much easier and cheaper.