According to this[0] ad revenue accounts for 82% of Alphabet's first quarter revenue in 2020 and I imagine a similar portion of previous quarters. You may have accidentally illuminated why this is probably a bigger scandal than it appears at first.
Alphabet was seeing around 15% YoY revenue growth prior to 2021. Then 2021 hit and the growth rate jumped to 41%. Now with the 6% YoY growth this year, it's evening out to ~22% annualized growth over the last 2 years.
> In the last quarter Alphabet reported "total revenues of $76.69bn, an increase of 11 percent year-on-year (YoY)."
You’ve got to (a) zoom out and look at trend, (b) focus on profit, not revenue, and (c) look at forecast (future, not past).
Alphabet net income for the twelve months ending September 30, 2023 was $66.732B, a 0.39% decline year-over-year. Their annual net income for 2022 was $59.972B, a 21.12% decline from 2021. And their annual net income for 2021 was $76.033B, a 88.81% increase from 2020.
If you believe that companies should grow, then a trend of rapidly decreasing profits is very worrisome and that you need to turn around.
With all respect, do you have a source for that? I thought Alphabet was losing money hand over fist on YT before they started being so aggressive with the ads.
Wait, they spent extra $30 billions in a quarter for research, development and marketing?
"Alphabet reported that its revenue rose 20 percent to $40.5 billion for the third quarter, but that profit dropped to $7.07 billion. Profit, which missed Wall Street forecasts, was hurt by rising costs for research and development and marketing, the company said."
From their latest earnings release [0], they had 61.880 billion dollars in revenue for the second quarter and 144,056 employees so a simple annualization of that quarter would put them at 1.718 million dollars in revenue per employee.
Alphabet made $31B in revenue last quarter. [1] CydeWeys already addressed their costs, but $100M over 10 years doesn't exactly sound like something they get out of bed for, especially considering they're already out $25M and they really will have expenses to cover for this.
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