Google’s Q3 earnings were the most uneventful in the last several years. shares are down 2% after reporting slightly below expectations. Earnings miss was largely explained away by several non-operating expenses.
This is the 17th quarter in a row that Google has achieved 20%+ revenue growth. Continuing to defy the law of large numbers. As a point of reference, over that same period, Facebook’s growth has declined from 54% to 25%.
Google Cloud is growing at approximately the same pace as AWS, in the mid-30% range.
Google is framing in its regulatory defense by arguing that Google products “expand choice” by allowing consumers to access more information. Given the company's 40+ tightly integrated products, the regulatory topic will likely needle at Google's multiple in the quarters to come.
More Waymo updates than usual in Q3. Fully driverless rides coming on a small scale soon, now testing long haul trucking on freeways, testing in new environments including heavy rain in Florida, and began 3D mapping in Los Angeles. Expect a similar early rider program in LA soon.
Google's recent change to Search algorithm to better understand natural queries is a big jump forward, and important for the company's transition from one that helps you find answers to one that helps you get things done.
Hearing more about Google’s efforts to bring about "ambient computing." This means device-agnostic services that have continuity as you move through your day.
Google views Android as the center of ambient computing and is well-positioned to build out peripherals like smart home devices that make the experience possible.
Apple is also pursuing ambient computing and we view these 2 companies as the only ones that can truly deliver it.
Apple is also pursuing ambient computing and we view these 2 companies as the only ones that can truly deliver it.
In our 12th quarter of tracking words related to artificial intelligence, we counted 15 mentions on the call. As Google continues to brand itself as an AI-first organization, we expect this number to increase. Here's how it has trended over time. 
