So I've now had about 3 seperate people ask me about Google and what I think about Google.Look, people, did we forget so quickly the lessons learned in 1999?
Right now at Google's share price of $420 it has a market cap of $82 billion. That is worth more than Dell Computers, Goldman Sachs, General Dynamic and Target.
It's a freaking web site people.
14 comments:
There's more to Google than just the website.
You have their ad sense program which I’m sure is raking in the dough for them.
Then you have other things they're getting their mitts into - like google earth, gmail, and perhaps they can get into a "Google on-line word processor" that could perhaps render purchasing a license of M$ Word redundant.
You could say the same thing about software back in the 80's - instead of saying "It's a freaking web site people" you could have easily said "It's a freaking floppy disk people".
It doesn't cost as nearly as much to produce a copy of software (e.g.: MS-DOS) as it does to produce a copy of an IBM-clone - and now it costs even less to host a website (great opportunity for a plug: franksemails.com is the best site btw :) than it does to cut a CD, box it and ship it.
Perhaps GoogleOS will be the next step? Bring it on I say!
the marginal cost of providing google services does approach 0.
All true gentlemen, all true.
That don't make it worth more than all of the Target Corporation.
Cpt. C.
Oh yes it does - it makes it worth a hell of a lot more than the likes of Target or Kmart etc.
There's a real reason as to why it's rightfully worth more than department stores - and this was one thing I omitted in my first comment (which I was hoping someone would pick up on) - it's because of, you guessed it:
==PR0N==
pr0n makes the internet world go ‘round – I can safely say that it’s the main reason why ISPs spend gazillions upgrading their network gear to counter for the demand of network traffic generated by people downloading it all the time. Google is a great search engine for searching pr0n, and people (me included) would rather whack off to it than spend any time with my missus in Target choosing pillow cases or lamp shades.
I worked for an ISP for 3 1/2 years, and a lot of our revenue came from hosting porn websites even though we never advertised that we offered hosting services. The people who hosted those websites also never called up technical support, so it was pretty profitable to have them as customers.
With this said, I am still confused how Google makes billions of dollars from porn. The advertisements for the pron websites probably make them money, but in the billions of dollars?
They still have to hire engineers, system admins, buy machines, maintain machines, buy electricity, they have bandwidth costs, sales people, support people, building rent, lawyer fees, and so on. So its not a zero cost operation either. I did hear that Google moved some of their operation to Ireland to decrease their overall corporate tax rate. Maybe I read that on this website ... I don't know.
I was, of course, just joking around :)
Although it is still very true that pr0n does make the internet world go 'round :)
pr0n and easy access to 24-hour online off-shore gambling.
and filesharing.
and pr0n.
Does the porn industry even add up to $82 billion in market cap???
And I would find it ironic if the leftist socialists that head up Google moved the corporation to Ireland to get lower taxes.
Liberals always get me on their hypocrisy on that one.
Google is headed up by leftist socialists?! That's interesting, where did you read that from?
Click Here to read the article.
They say it isn't for tax purposes, but with their popularity levels, they can say anything :). I think they got the idea after Yahoo, eBay and Amazon set up shop there as well.
And Frank, I used to joke about porn all the time, and I can't believe I didn't get it! There are a lot people that are so serious on the Internet these days, that I really thought you weren't joking. I guess I am the serious one this time :(.
That's just too good - i'm gonna set up some pr0n companies in Ireland methinks :)
mmmm.... red head pr0n :)
I would have thought the last paragraph (gazillions of dollars, lampshades, pillow cases etc) would have given me away - even i cracked me up when i read that back to myself :)
Google's market cap is actually 126 billion. This does not on a fully diluted basis, so the value of it's outstanding equity is actually even higher than that
Yes, but I used the same market cap calculation techniques on the other companies, so to keep it consistent I'd have to stick with $86 billion. Either way, knock each other out buying Google.
I bought some NWA!
One must have faith in the Minnesota's socialists!
Per the latest 10Q:
At October 31, 2005, the number of shares outstanding of Google’s Class A common stock was 199,502,630 shares and the number of shares outstanding of Google’s Class B common stock was 96,045,503 shares.
Even on a basic (not fully diluted) basis, this is well over $120 billion.
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