Google is doing what the street wants, which is a proxy for shareholders. The increase in ads revenue, the first ever dividends, and the layoffs. These are the tools that the leadership have, and mostly short-term. The long-term innovations haven’t really taken hold. So, this may be the flame burning the brightest before it goes out.

Just because of inflation you would expect more companies to exceed 1 and 2 trillion dollar market caps over time. Their existence is not a problem to be solved. Google search, maps, email, books, scholar etc. are wonderful services that have created immense value.

So many ads…

Edit: but it’s so apt. What that valuation is actually showing you is the value of sitting in between people looking for things and people looking to sell things to people looking for things, and turning that position into an ads engine increasingly at the expense of enabling people to find what they are looking for. The valuation goes up to the extent ads are prioritized over just getting out of the way and giving people what they are looking for.

I wonder what % is from ads that are straight garbage. AI generated celebrity voices, information on how to get the latest "stimulus" money, marketing schemes involving things like audiobooks or real estate, health scams...

Related:

Google Earning Q1 2024 [pdf]

https://news.ycombinator.com/item?id=40162354