Traffick - The Business of Search Engines & Web Portals
Blog Categories (aka Tags) Archive of Traffick Articles Our Internet Marketing Consulting Services Contact the Traffickers Traffick RSS Feed

Thursday, July 17, 2008

Google Earnings Still Incredible

A couple of major announcements have come down the pike from Google on the product side. We'll get to those shortly.

But first, the earnings. Google shares (GOOG) are down about 8% in after-hours trading based on them missing Wall Street estimates, whatever that means. By all accounts they continue to rake it in in remarkably robust fashion across all sectors.

Absolutely, this thing will slow sharply soon. It has to. If Google winds up the year with $21 billion or so in revenues, it's hard to see how any company like Google could get much past $50 billion in revenues from advertising, ever. They can't keep growing at 50% a year forever unless they start invading nations and colonizing other galaxies (which, I understand, they're working on). Google has shown no propensity to make money in other lines of business, either. They are good at creating massive value to funnel users back into the same economic engine. When they eventually move into revenue-generating new fields like telecommunications, they can keep growth moving that way - but again, the profit margins and overall financial outcome is bound to "disappoint Wall Street."

The final growth slower for Google is the people equation. To continue growing at a breakneck pace without slackening their headcount increases is near impossible: they'd have to start hiring dumb people. They're sort of averse to that.

For now, even Google economist Hal Varian's confident statement that Google is benefiting from a "Wal-Mart effect" in that this highly targeted advertising is the "last thing" companies want to cut in this weak economy, is tilted a bit conservatively. The reality is that many brands with big kitties of cash remain skittish, and have barely migrated any of their wasteful offline spends to online channels. The migration is ongoing. As such, Google will get to that $50 billion top-line number before you know it. That's going to be disappointing only if your "estimate" says $53 billion.

Labels:

Posted by Andrew Goodman




View Posts by Category

 

Speaking Engagement

I am speaking at SMX West

Need Solid Advice?        

Google AdWords book


Andrew's book, Winning Results With Google AdWords, (McGraw-Hill, 2nd ed.), is still helping tens of thousands of advertisers cut through the noise and set a solid course for campaign ROI.

And for a glowing review of the pioneering 1st ed. of the book, check out this review, by none other than Google's Matt Cutts.


Posts from 2002 to 2010


07/2002
08/2002
09/2002
10/2002
11/2002
12/2002
01/2003
02/2003
03/2003
04/2003
05/2003
06/2003
07/2003
08/2003
09/2003
10/2003
11/2003
12/2003
01/2004
02/2004
03/2004
04/2004
05/2004
06/2004
07/2004
08/2004
09/2004
10/2004
11/2004
12/2004
01/2005
02/2005
03/2005
04/2005
05/2005
06/2005
07/2005
08/2005
09/2005
10/2005
11/2005
12/2005
01/2006
02/2006
03/2006
04/2006
05/2006
06/2006
07/2006
08/2006
09/2006
10/2006
11/2006
12/2006
01/2007
02/2007
03/2007
04/2007
05/2007
06/2007
07/2007
08/2007
09/2007
10/2007
11/2007
12/2007
01/2008
02/2008
03/2008
04/2008
05/2008
06/2008
07/2008
08/2008
09/2008
10/2008
11/2008
12/2008
01/2009
02/2009
03/2009
04/2009
05/2009
06/2009
07/2009
08/2009
09/2009
10/2009
11/2009
12/2009
01/2010
02/2010
03/2010
04/2010

Recent Posts


Snap! to 'Social Media Experts'

Search Technology Assumes There's Something to Sea...

AdSense for Domains Target of Lawsuit

Piecemeal Microsoft Offer Unhelpful

New Online Phenomenon: The Review Farm

Stunning Court Decision Hands Private Viewing Habi...

Scent Killer 4,486

Google PPA Switched Over to Performics Product

Bad News for Google's Customers: Bell Canada Exec ...

New Google/Yahoo! Deal Information

 


Traffick - The Business of Search Engines & Web Portals

 


Home | Categories | Archive | About Us | Internet Marketing Consulting | Contact Us
© 1999 - 2013 Traffick.com. All Rights Reserved