- will Porat be cutting "other bets", rumors is that other bets is in line for a big budget cuts
- Options implied vol is showing enough movement baked in that GOOG could become largest company by Market Cap if
the street likes their numbers, and GOOG doesn't disappoint often
- Like Facebook the public and wallstreet have weighed in and they love money more than privacy.
- analysts are not in anyway mixed about Google's prospects
- 41 buy recommendations vs 2 hold and 0 sell
Add Revenue:
- 4Q paid clicks on Google's own sites is up 66%, seems high enough that it's not organic
but more than likely increased advertising space on sites, forced youtube videos, etc
- Cost per click on Google's own sites is down 29%
Numbers:
- 4Q profit of $8.2B est $8.7B
- 4Q EPS $12.77
- 4Q expenses $31.2B up from $24.7B yoy.
- 6.85B on capex vs $3.8B yoy
- 4Q operating margin 21% down from 24% yoy.
- 4Q other bets lost $1.33 billion, don't hear much about these bets anymore but that is an outsized loss in this category.
-Again they mention Verily and Waymo in passing but no details worth mentioning.
- 4Q Add Revenue $32B
- 4Q own site revenues $27B
Misc:
- shares are down a bit, lots of volume, nothing out of ordinary, guessing its mostly covering and profit taking.
- Too bad for almost all factor models that really on trade on tech Momentum
- The company added nearly 20,000 employees over the year. * WOW, double check this, that's a large head count addition.
- can't find any Cloud break outs, I guess MSFT and AMZN are really beating them, given how much of a growth engine it is for the 2 leaders
I can't see why GOOG would hid it if they were able to compete.
- No youtube breakout of revenues, Again not a bullish sign for that division, stil nothing on youtube on the call.
- EDIT on the earnings call they did talk briefly about Youtube, no real new numbers though, just their assurance that youtube is crushing it
- Porat is doing gymnastics to talk about youtube but not actually say anything about youtube. Are youtbue numbers really that bad????
- Google was the top lobby spender of 2018, not in tech but for all companies. Silicon Valley is now arguably bigger force than Wall Street on US politics.
- margins are down and spending is up, not sure if its GOOG that wants to spend to grow or its competitors that are forcing it to compete.
Either way, this competition is great for tech salaries
- Employees totaled 98,771 in the quarter vs 80,110 a year ago, WOW
> Silicon Valley is now arguably bigger force than Wall Street on US politics.
There's no argument there. The banks and military industrial complex have drastically more influence and power than Silicon Valley, despite SV closing that gap over time.
All politicians, with few exceptions, bow to the feet of the military industrial complex. They all get in line. That's slightly less true for Wall Street, however only slightly.
Every aspect of the US Government is dependent on the Federal Reserve and US banking system, without exception. Silicon Valley companies come and go over the decades, they rise and fall. JP Morgan predates the Fed and has been critical to the US Government for over a century.
Google is a Walmart or the former GM, as far as the politicians in DC are concerned. Powerful, rich, influential, and still not a first tier power in DC. It never can be.
Military, weapons, currency, financing. That's the source of real power, all of DC knows it. Everything else is just a play thing of the moment, inevitably replaced by a new shiny play thing in the next decade or two. Long after Google is gone, banking and military will still be around.
That's the impression, sure. But soon, Tech companies could become darlings. Think about it: the government works in close cooperation with banks to catch money laundering.
It's not too far fetched to say the government works in close cooperation with Google to catch ...?
Some rich people serve as target for being hostage as opposed to exerting influence. I have to wonder how many politicians are holding guns to Google and FB for serving them information+money in exchange for not striking anti-trust or other legislative hammers.
They don't hold the world's information. They are an advertising company with a search engine for public websites, which are all hosted outside of Google.
>can't find any Cloud break outs, I guess MSFT and AMZN are really beating them, given how much of a growth engine it is for the 2 leaders I can't see why GOOG would hid it if they were able to compete.
"Other revenue" is up 30% YoY. I'd imagine this is mostly Google Cloud (it also includes Pixel and other hardware). In another article I read, Google said "Last year we more than doubled both the number of Google Cloud Platform deals over 1 million as well as the number of multiyear contracts signed" [0]
The opening statements of the quarterly public analyst calls give a lot of good direction. I don't think anyone would be foolish enough to blab an actual breakdown for this, Alphabet- or Cloud-wide.
Just because Google Cloud doesn't break out its revenue, doesn't mean its a sign of trouble.
It makes complete sense, they're obviously in the third position. Why put additional shareholder pressure that can put an enterprise in a position where they're incentivized towards short-term gains vs. the long play that this is..
> Google chief financial officer Ruth Porat pointed to sizable jumps in compensation for Other Bets employees and executives, with the total stock-based compensation now amounting to nearly $500 million for this past quarter.
What happened with the increased headcount? Which areas is this in? It would be great news if this were on sales / support (in cloud?) since they’re severely underrepresented in these areas and it seems like low hanging fruit to invest here.
Would this increase in headcount be an explanation for increased expenses? If not, what would explain the dramatic increase in expenses?
> Google was the top lobby spender of 2018, not in tech but for all companies. Silicon Valley is now arguably bigger force than Wall Street on US politics.
Lobbying is not where power is in US politics. Spending on elections is.
I'm not sure that spending on elections is where the power is either, but certainly any claim that lobbying gives you durable political power is at best undersourced.
- will Porat be cutting "other bets", rumors is that other bets is in line for a big budget cuts
- Options implied vol is showing enough movement baked in that GOOG could become largest company by Market Cap if the street likes their numbers, and GOOG doesn't disappoint often
- Like Facebook the public and wallstreet have weighed in and they love money more than privacy.
- analysts are not in anyway mixed about Google's prospects
- 41 buy recommendations vs 2 hold and 0 sell
Add Revenue:
- 4Q paid clicks on Google's own sites is up 66%, seems high enough that it's not organic but more than likely increased advertising space on sites, forced youtube videos, etc
- Cost per click on Google's own sites is down 29%
Numbers:
- 4Q profit of $8.2B est $8.7B
- 4Q EPS $12.77
- 4Q expenses $31.2B up from $24.7B yoy.
- 6.85B on capex vs $3.8B yoy
- 4Q operating margin 21% down from 24% yoy.
- 4Q other bets lost $1.33 billion, don't hear much about these bets anymore but that is an outsized loss in this category.
-Again they mention Verily and Waymo in passing but no details worth mentioning.
- 4Q Add Revenue $32B
- 4Q own site revenues $27B
Misc:
- shares are down a bit, lots of volume, nothing out of ordinary, guessing its mostly covering and profit taking.
- Too bad for almost all factor models that really on trade on tech Momentum
- The company added nearly 20,000 employees over the year. * WOW, double check this, that's a large head count addition.
- can't find any Cloud break outs, I guess MSFT and AMZN are really beating them, given how much of a growth engine it is for the 2 leaders I can't see why GOOG would hid it if they were able to compete.
- No youtube breakout of revenues, Again not a bullish sign for that division, stil nothing on youtube on the call.
- EDIT on the earnings call they did talk briefly about Youtube, no real new numbers though, just their assurance that youtube is crushing it
- Porat is doing gymnastics to talk about youtube but not actually say anything about youtube. Are youtbue numbers really that bad????
- Google was the top lobby spender of 2018, not in tech but for all companies. Silicon Valley is now arguably bigger force than Wall Street on US politics.
- margins are down and spending is up, not sure if its GOOG that wants to spend to grow or its competitors that are forcing it to compete. Either way, this competition is great for tech salaries
- Employees totaled 98,771 in the quarter vs 80,110 a year ago, WOW