1/ Thread: $GOOG 2Q’21 Update
As investors kept searching for the next “Google”, it turns out you could have done pretty well betting on the real Google with YTD of ~60% or ~30% CAGR in the last 3 and 5 years.
Here are my highlights from the earnings call and quarter.
As investors kept searching for the next “Google”, it turns out you could have done pretty well betting on the real Google with YTD of ~60% or ~30% CAGR in the last 3 and 5 years.
Here are my highlights from the earnings call and quarter.
2/ Every quarter, big tech continues to bend our minds with their numbers.
Regression to the mean? Pfft.
Regression to the mean? Pfft.
3/ YouTube is growing at 40% and YouTube ads revenue itself was 95% of $NFLX revenue last quarter.
In 1Q’19, YouTube ads was ~67% of NFLX revenue.
YouTube is a beast, and perhaps NFLX isn’t really “big tech”!
In 1Q’19, YouTube ads was ~67% of NFLX revenue.
YouTube is a beast, and perhaps NFLX isn’t really “big tech”!
4/ Incremental operating margin is so high that Google really needs to hide it fast!
Even American capitalism may not tolerate such a wonderful business at such a scale.
Even American capitalism may not tolerate such a wonderful business at such a scale.
5/ “if you look at Search on a 2-year stack, the growth is the highest it has been years”
“MUM is a big advancement in Search, a thousand times more powerful than our current systems.”
Good luck competing on search!
“MUM is a big advancement in Search, a thousand times more powerful than our current systems.”
Good luck competing on search!
6/ Retail was the largest contributor on ads, followed by travel, financial services, and media and entertainment.
“Searches for support local business are up like 20x last year in the U.S. alone.”
“Searches for support local business are up like 20x last year in the U.S. alone.”
7/ “from Q4 '18 to Q4 '20, on average, 70% of YouTube's reach was delivered to an audience not reached by the advertisers TV media.”
8/ “U.S. advertisers who shifted just 20% of spend from TV to YouTube generated a 25% increase to the total campaign reach within their target audience, while lowering their cost per reach point by almost 20%.”
9/ “YouTube is uniquely positioned to drive both massive reach and action.”
“we're working really hard to make YouTube not only more actionable, but also more shoppable.”
“we're working really hard to make YouTube not only more actionable, but also more shoppable.”
10/ “2020 was about removing financial barriers. We made listings free of commission fees.”
“2021, as I said, has been about removing integration barriers. We have the partnerships with Shopify, Square, BigCommerce, GoDaddy, Woocommerce and so on.”
“2021, as I said, has been about removing integration barriers. We have the partnerships with Shopify, Square, BigCommerce, GoDaddy, Woocommerce and so on.”
11/ “…in the U.S., we have over 120 million people watch YouTube on TVs every month, and that's up from like 100 million last year. We're #1 in reach and watch time among ad-supported streaming services.”
12/ As I hinted earlier, Google will try its best to hide the profitability.
13/ With ~$200 Bn annualized ad revenue, is Google going to focus on diversifying its revenue mix?
“We start from first principles to its focusing on both investing in deep technology and solving user problems.”
“We start from first principles to its focusing on both investing in deep technology and solving user problems.”
End/ I will cover $FB and $AMZN earnings this week.
You will find all my twitter threads here: mbi-deepdives.com/twitter-thread…
You will find all my twitter threads here: mbi-deepdives.com/twitter-thread…
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