Google - The Ultimate Money Making Machine

readwriteweb.com — This article compares Google to Starbucks, making the case that Google has almost no friction as a business - whereas Starbucks has to deal with geography, maintenance, marketing and people. But in the decade to come, will there be a better business model than Google's current Internet model? Apr 11, 2007 View in Crawl 4

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Closed Account Apr 11, 2007

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what the hell, i dont get it. all i see is graphs that make no sence. i dont care much for starbucks either

sgong1145 Apr 11, 2007

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Also, Google's ad revenue business model has its faults as well. How many people on Digg routinely click google text ads? I don't have any evidence for this, but I'm guessing most of the people clicking their ads are from an older generation of less computer-savvy users. What happens when the older generation starts being replaced by people who have used the internet since they were toddlers?

idahoaustrian Apr 11, 2007

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Google is NOT the cash generating machine the article makes it out to be. this article does a lot of hand waving to avoid the facts.Google's total revenue in 2006 was 10,604.92 (millions)By contrast, Berkshire Hathaway's total revenue was 98,539.00 (millions) in 2006.Google has a market cap of 145 billion vs 168 billion for BRKAlso,

thatsunpossible Apr 11, 2007

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Google has a technical presence that rivals Starbucks, with their integration into so many tools (browsers for one), and with their name-brand recognition among even non-techies. Starbucks doesn't have an addictive quality, coffee does. Starbucks doesn't even make the best coffee. So just as with Google, it is relatively simple to "shop somewhere else" if something better comes along. That's business, period.

theoster Apr 11, 2007

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"the Google"i like it.

Closed Account Apr 11, 2007

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@ Thats Unpossible"Run the country like a business"...?Isn't that what Bush SAID he was going to do? How is that working out?He has a Harvard MBA, too!

sgong1145 Apr 11, 2007

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What does market cap have to do with how solid the company is, or whether how much money it generates is a lot?A high Price/Earnings ratio simply means that the collective wisdom of the market has placed its bet on Google earning significantly more in the future. It does not necessarily mean that Google is growing fast. It is simply a measure of investors' forecast of its future earnings.I'm not sure what you mean by "it's not generating much cash for how big the company is". Price/Earnings ratio is not a good measure of whether the company is generating a lot of cash for its size; you would want to look at something like the ratio of its profits to expenses.