Why A $3.4B Quarterly Profit Should Make Your Day

It was reported this week that Google's revenue for the quarter rose 19%, to $15.42 billion. But because it was $100 million short of expectations -- about 1/1500th of the total -- (and cost per clicks were down 9%  year-over-year), "the Street" was disappointed, and the stock dropped for about 30 seconds.

Jeesuz Christ on a cross (why, how seasonal), Google's sales in 90 days were higher than the entire year's GDP of Cambodia or Jamaica, Iceland or Albania. Most companies in the ad tech space would settle for the loose change in the cushions of Larry Page or Sergey Brin's sofas. But no, "the Street" isn't happy with a mere $3.45 billion in profits.

"The Street" apparently doesn't think Google is intelligently spending its nearly $60 billion in cash reserves, because instead of buying stuff that couldn't possibly make it any MORE successful in the ad space, they are buying futuristic stuff like robotic and drone satellite companies. Dude, you make $60 billion -- then you get to decide what  a smart spend is. Until then, shut the hell up.



 Who else founded a company in 1998 and in about a decade and a half ginned up a $400 billion market cap, the second-biggest in America? The spill-prone oil company with the biggest market cap was started in 1882, a pretty nice runway.

I am not a big fan of Google's.  I think they do plenty of evil. They have effectively blocked any competition for their core search business, and have the power to screw any other business (or entire industry category) by adjusting a numeral or a parenthesis to their famously secretive and ever-changing ranking algorithm. Between their cameras and user profiles, they undoubtedly have more accurate information on who you are and what you do than the NSA (who probably shows up like a neighbor asking for a cup of sugar now and again). But who among us doesn't kick him- or herself for not snapping up Google at its $85 a share IPO?

I don't have a crystal ball, so can't forecast if Google will be successful in the Internet of Things or drone businesses. But when you are sitting on $60 billion and adding another $12 or so billion every year, you can make some pretty spectacular mistakes and still come out smelling like a rose. Even if along the way "the Street" rubs its hands and arches its collective eyebrow.

Next story loading loading..