Earning are put for Microsoft, Meta, Amazon, and Google Google took a 7% plunge while the other stock ripped ⚡️… wallatreet for the most part is forward looking and will put a premium to a stock if it has a good story (a good vision for future growth) Do you think Goog is being penalized for the lack of vision from leadership, or lack of a credible story on how to execute on AI? I’m curious to hear other people’s thoughts
What’s google’s innovation lately? My google maps is behaving worse than before and I get bombarded with ads on youtube
Ads is our main cash cow. We are milking it to the max
In 1 month Goog will get pumped from nowhere, meta dudes will ask the same question
Doubtful
Goog got penalized because they missed ads rev estimates by 200 mill. This scenario is easily reversible.
Nah
Sundar is the Steve Ballmer of Google, it’s THE fact. To keep his role, he will do everything that Wall Street and board members want, which is cutting costs, layoffs.
It's no different to Andy Jassy at Amazon. He's there to not rock the boat and to keep investors happy. The difference is that Amazon stock is sky high, so if this is what Sundar is judged on, he is absolutely failing.
That’s why I’m not a fan of companies that are not founder-led.
Stock prices are less about innovation and more about how much revenue/profit an innovation can generate. OpenAI has the best tech, but they won't be able to sell it(in large enough quantities) without a partner like Microsoft. Microsoft is one of the best stocks not because they are the most innovative but they have probably the best sales team in the world. Even if Google's AI comes up on top technically, they need to have enough paying enterprises to foot the bill. Problem with Google is they don't have enterprise customers and there is a limit on how much money you can make in consumer data/usage. Ex - every enterprise will easily pay $30-$50 to use AI features in work tools, but not every consumer will pay even if the tech is superior.
Google Cloud (combo of SaaS and enterprise productivity) makes 9 billion per quarter and is growing. It has lots of enterprise customers. Just not to the extent that Microsoft has.
Which enterprise customer does meta has ? Are you saying meta is going to drop ?
Meta got rewarded for finally dumping the stupid metaverse. It takes a little lag for it to show in the stock.
Google is in McKinsey maintenance mode. No sense paying more than about 12x earnings for that.
Msft also didn’t perform well
Earnings were good. Msft just performs weirdly after earnings. Also the stock is back today.
I dont think you understand how this works. Microsoft already went up in anticipation before the earnings, so the expectations were high, and they were “met”, so no big bounce after earnings. Check the october to jan rally. Meta’s blowout earnings were somewhat above expectations so it went up significantly after the earnings.