GOOGL - Google

[hyten1]

palantir

 

i hear ya, i don;t know if its permanent impairment, than again neither do you.

 

but for now mobile ads are less profitable (its a small ad on a small screen, usually you are on the go, people can come up with tons of reason). not saying this can't be overcome (who knows)

 

until the promise land/holy grail of targeting ads are achieve (people have been saying this since the internet started, you can target specifically base on what the user wants etc etc)

 

i honestly don't know, but it is something to be concern about if the rate of of ad moving to mobile is faster than the rate they can overcome this problem (mobile ad are less profitable) then we have a problem. I think FB is facing this issue right now.

 

FB is another example we all know what the holy grail/promise land is with FB (you got tons of personal data, ads should be very targeted which translates to more money for FB). however this still has not happen yet, not saying it won't. I do have my doubts.

 

hy

[rkbabang]

I'd wait till I get back to my desk.

 

Good for you, having a superhuman memory to remember all the things you'd like to look up throughout the day and then doing a big batch of searches later, but if that's how you do it, you are an exception.

I spend most of my waking hours in front of a computer screen. I don't need to remember much.

 

This is the reason I don't even have a smartphone.  I have $0.10/min and $0.10/text pre-paid dumb phone from Boost Mobile.  I very seldom need to look something up and can't, I'm almost always in front of a computer (or iPad) or near one.  I think you and I are the exceptions though.  Most people do not stare at a computer screen for 8-10 hours per day.  If they didn't have a smartphone they would do far fewer searches. 

[Guest valueInv]

I'd wait till I get back to my desk.

 

Good for you, having a superhuman memory to remember all the things you'd like to look up throughout the day and then doing a big batch of searches later, but if that's how you do it, you are an exception.

I spend most of my waking hours in front of a computer screen. I don't need to remember much.

 

This is the reason I don't even have a smartphone.  I have $0.10/min and $0.10/text pre-paid dumb phone from Boost Mobile.  I very seldom need to look something up and can't, I'm almost always in front of a computer (or iPad) or near one.  I think you and I are the exceptions though.  Most people do not stare at a computer screen for 8-10 hours per day.  If they didn't have a smartphone they would do far fewer searches.

Yup. This demonstrates the problems with using anecdotal or segmented information.

[Palantir]

I called GOOG going to 800.

 

FYI.

[Palantir]

i hear ya, i don;t know if its permanent impairment, than again neither do you.

 

but for now mobile ads are less profitable (its a small ad on a small screen, usually you are on the go, people can come up with tons of reason). not saying this can't be overcome (who knows)

 

Presciently enough, Steve Jobs noted this a few years ago - how search advertising was not the way to do mobile as people spent most of their time inside apps.

[txlaw]

Google introduces Chromebook Pixel:

 

http://news.cnet.com/8301-1023_3-57570520-93/googles-chromebook-pixel-elevates-chrome-os-ambitions/

 

http://chrome.blogspot.com/2013/02/the-chromebook-pixel-for-whats-next.html

[Guest hellsten]

Google introduces Chromebook Pixel:

 

http://news.cnet.com/8301-1023_3-57570520-93/googles-chromebook-pixel-elevates-chrome-os-ambitions/

 

http://chrome.blogspot.com/2013/02/the-chromebook-pixel-for-whats-next.html

 

This is probably one of the last computers on earth that I would buy. No apps… For the same price you could get an iPad and a Surface Pro, with apps…

[txlaw]

Google introduces Chromebook Pixel:

 

http://news.cnet.com/8301-1023_3-57570520-93/googles-chromebook-pixel-elevates-chrome-os-ambitions/

 

http://chrome.blogspot.com/2013/02/the-chromebook-pixel-for-whats-next.html

 

This is probably one of the last computers on earth that I would buy. No apps… For the same price you could get an iPad and a Surface Pro, with apps…

 

I agree.  It appears to be more of a proof of concept -- another Google Glass type foray showing everyone how they're innovating like crazy at Mountain View.

 

There are apps, but they're web apps. 

[tradevestor]

There are thousands of apps.

https://chrome.google.com/webstore/category/home

including several offline apps https://chrome.google.com/webstore/category/collection/offline_enabled

[Guest hellsten]

Google introduces Chromebook Pixel:

 

http://news.cnet.com/8301-1023_3-57570520-93/googles-chromebook-pixel-elevates-chrome-os-ambitions/

 

http://chrome.blogspot.com/2013/02/the-chromebook-pixel-for-whats-next.html

 

This is probably one of the last computers on earth that I would buy. No apps… For the same price you could get an iPad and a Surface Pro, with apps…

 

I agree.  It appears to be more of a proof of concept -- another Google Glass type foray showing everyone how they're innovating like crazy at Mountain View.

 

There are apps, but they're web apps.

 

I wonder how much of what Google does, outside of search and advertising, really makes sense. All these different projects must steal a lot of time from management and engineers. I wouldn't be surprised if a smaller and more focused company takes one of Google's ideas and outperforms Google (e.g. Microsoft and http://en.wikipedia.org/wiki/Microsoft_Tablet_PC). It has already happened in Russia (Yandex) and China (Baidu). My guess, which I admit is most likely wrong, is that it will happen to Android too at some point, because the platform is so fragmented and the quality of the apps and user experience is so bad.

[txlaw]

There are thousands of apps.

https://chrome.google.com/webstore/category/home

including several offline apps https://chrome.google.com/webstore/category/collection/offline_enabled

 

Correct. 

 

hellsten, the idea is that the apps for ChromeOS are web technology-based.  And there is functionality offline as well for some apps.  It's GOOG trying to make the web the platform.  ChromeOS is the long game.  Android, which has native apps, is the short game.

 

Ultimately, it makes sense for GOOG to push this, as they really care about their service and software offerings.  More evidence for you guys that the licensing model for the OS could possibly be decimated over the next decade. 

 

Personally, I prefer iOS at the moment to Android.  But the innovation gap continues to close, and I think it's odd that so many of you guys (particularly, the AAPL investors) say that the Android UX is terrible.  It only seems to be getting better and better from my experience with Android devices.

[Guest hellsten]

There are thousands of apps.

https://chrome.google.com/webstore/category/home

including several offline apps https://chrome.google.com/webstore/category/collection/offline_enabled

 

All the apps I've downloaded from the Chrome Webstore have been, in one way or the other, crippled versions of apps or games I use on OSX, iOS and Windows. I've tried several Chrome apps and games, but the user experience is so bad I have stopped visiting the Chrome Webstore. I'm not using a single Chrome application at the moment.

 

Google has basically lost me as a future Android and Chrome Webstore customer because of their bad (cheap) user experience (hardware and software). txlaw, I agree that user experience has been improving, and for the majority of users the user experience no longer seems to be an issue. Anyway, for me most of Google's products are crippled versions of competitors' products (Office, Dropbox, iOS, etc). Their search engine and ad platform are still the best products in their respective categories.

 

I couldn't find any revenue figures for the Chrome Webstore, but I found these statistics:

15,911 packaged apps

  4,773 hosted apps

 

5 apps have 10+ million active users.

 

0-100: 20330

100-1K: 15772

1K-10K: 9263

10K-100K: 2856

100K-1M: 569

1M-10M: 41

10M+: 5

 

Source: http://browserfame.com/933/chrome-web-store-stats-presentation

 

It's clear Google is trying to build a cloud operating system:

http://www.businessinsider.com/2008/9/google-chrome-browser-takes-page-out-of-microsoft-book-link-and-lever

 

Note that I still think Google is a great company, I just wonder if they should focus more on search and advertising.

[txlaw]

Note that I still think Google is a great company, I just wonder if they should focus more on search and advertising.

 

Here's my take.  GOOG's core business is to provide search, AI, and augmented reality, and to monetize those services through the data it gathers (whether by advertising or otherwise). 

 

One major point of attack against GOOG is to control the OS layer between the end user and Google services.  Therefore, GOOG provides Android and ChromeOS.  Also, the more people are using the Web, the better GOOG does because they get a greater share of a person's time. 

 

And we haven't even gone into their other services (e.g., YouTube, Docs, IaaS, and PaaS) that benefit from having these GOOG-produced platforms.  So to me, it makes a lot of sense what GOOG is doing.  It's all about growing the business, expanding the moat, and at the same time pushing the boundaries of technology and advancing the civilization.

[Guest valueInv]

Google introduces Chromebook Pixel:

 

http://news.cnet.com/8301-1023_3-57570520-93/googles-chromebook-pixel-elevates-chrome-os-ambitions/

 

http://chrome.blogspot.com/2013/02/the-chromebook-pixel-for-whats-next.html

 

This is probably one of the last computers on earth that I would buy. No apps… For the same price you could get an iPad and a Surface Pro, with apps…

 

I agree.  It appears to be more of a proof of concept -- another Google Glass type foray showing everyone how they're innovating like crazy at Mountain View.

 

There are apps, but they're web apps.

 

I wonder how much of what Google does, outside of search and advertising, really makes sense. All these different projects must steal a lot of time from management and engineers. I wouldn't be surprised if a smaller and more focused company takes one of Google's ideas and outperforms Google (e.g. Microsoft and http://en.wikipedia.org/wiki/Microsoft_Tablet_PC). It has already happened in Russia (Yandex) and China (Baidu). My guess, which I admit is most likely wrong, is that it will happen to Android too at some point, because the platform is so fragmented and the quality of the apps and user experience is so bad.

 

They've announced a crippled laptop for $1299 the year in which tablet sales will overtake laptop sales. They surely know how to skate where the puck is going  ;D ;D ;D

 

They're driven by a serious case of Apple envy. They're talking about retail stores when they're already making little to no margins on their physical products. Gradually, the low cost competitor keeps adding to its cost structure and hopes to compete on price. :o

[txlaw]

Apparently, there is a chance that a Nexus 5 will be coming in a couple of months.

 

http://www.telegraph.co.uk/technology/news/9802194/Google-Nexus-5-launching-next-month.html

[Guest wellmont]

things are starting to get interesting...new gs4, new nexus 5, and new moto X phone coming soon...oh and the z10 is coming to the usa.

[Guest valueInv]

Update on Google TV:

 

http://gigaom.com/2013/02/25/lg-webos-smart-tv/

[Guest valueInv]

I've heard people on this thread make the point that Android is good for Google because it gives Google better control over the devices and how its services are delivered. I've argued to the contrary. Here's another proof point:

 

http://online.wsj.com/article/SB10001424127887323699704578324220017879796.html

 

http://www.computerworld.com/s/article/9237109/Samsung_s_next_gen_NFC_smartphones_and_tablets_to_get_Visa_s_mobile_payment_applet

 

Where's Google wallet?

[no_free_lunch]

Interesting forum discussion where the participants are discussing the rapidly escalating costs of googles system.  Just another example of how awesome google is:

 

I remember back in 2005, Google Adwords charged my business 5 - 15 cents per click. My website didn't have much or any natural search ranking at the time.

..

Now the Google Adwords Cost Per Click has gone up to at the very least 60 cents. Some combinations of keywords are above one dollar.

 

The price was risen from 5 to 60 cents (and above) in the space of 7 years. This is massive inflation. And that doesn't count the keywords that have all moved to 1 dollar and above, which I no longer pay any attention to.

 

..

 

We're all in the same boat (I have keywords that are $5 I'd like to bid on), but we keep coming back to Google because it works.  If it doesn't work, you have to adapt and do something different.

 

http://discuss.joelonsoftware.com/default.asp?biz.5.851538.34

[Liberty]

They're complaining about market-set prices. If people are bidding keywords up, it's because they're still making a profit at those prices.

[Guest hellsten]

Google and the world brain:

Documentary which tells the story of the most ambitious project ever conceived on the internet and the people who tried to stop it. In 1937 HG Wells predicted the creation of the 'world brain', a giant global library that contained all human knowledge which would lead to a new form of higher intelligence. 70 years later the realisation of that dream was under way, as Google scanned millions of books for its Google Books website. However, over half those books were still in copyright and authors across the world launched a campaign to stop them, climaxing in a New York courtroom in 2011.

 

This is a film about the dreams, dilemmas and dangers of the internet, set in spectacular locations in China, USA, Europe and Latin America.

 

http://www.bbc.co.uk/programmes/b01qxmqc

 

Trailer:

[ItsAValueTrap]

They're complaining about market-set prices. If people are bidding keywords up, it's because they're still making a profit at those prices.

That's why Google is awesome.  :)

 

Competition among its customers will drive up its pricing.  As more people discover Internet advertising (and more people buy things online and online retailers offer more variety and lower prices), there will be more competition.

[Guest valueInv]

Interesting forum discussion where the participants are discussing the rapidly escalating costs of googles system.  Just another example of how awesome google is:

 

I remember back in 2005, Google Adwords charged my business 5 - 15 cents per click. My website didn't have much or any natural search ranking at the time.

..

Now the Google Adwords Cost Per Click has gone up to at the very least 60 cents. Some combinations of keywords are above one dollar.

 

The price was risen from 5 to 60 cents (and above) in the space of 7 years. This is massive inflation. And that doesn't count the keywords that have all moved to 1 dollar and above, which I no longer pay any attention to.

 

..

 

We're all in the same boat (I have keywords that are $5 I'd like to bid on), but we keep coming back to Google because it works.  If it doesn't work, you have to adapt and do something different.

 

http://discuss.joelonsoftware.com/default.asp?biz.5.851538.34

 

A quick look through Google's finances will show that CPCs have been declining. It was only in the last one quarter that CPCs show a halt (lull?) in the decline.

Even then, CPCs were lower on a YoY basis.

[Palantir]

^ Isn't that sort of like Apple's declining margins on the iPad because of the introduction of the Mini? :)

 

Introduction of a new, lower margin set of revenue is going to bring down margins overall. How have desktop/traditional searches done? That's the relevant question.

[Guest valueInv]

^ Isn't that sort of like Apple's declining margins on the iPad because of the introduction of the Mini? :)

 

Introduction of a new, lower margin set of revenue is going to bring down margins overall. How have desktop/traditional searches done? That's the relevant question.

I'm not sure how that even compare but a few things that are quite different:

 

1, iPad mini cannibalizes the iPad, not the iPhone which is Apple's biggest product. Mobile cannibalizes desktop search which is still Google's biest product by far. Take a look at PC sales numbers. Over time, there will be no dekstop searches.

2, iPad has growing software revenue which is on top of the hardware revenue. There is no such equivalent for Google.