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Google Spreads Its Wings Launching A Plethora Of Game Changing Products & Initiatives Causing Analysts To Scramble
On Monday I posted Google Q2 2013 Update: Valuing Possibly The Most Powerful Co. In The World?, an update on Google's valuation and target price points for my subscribers. In said piece, I illuminated the massive misunderstanding of Google's business model. I consistently hear pundits bang on the table screaming, "But nearly all of Google's revenue comes from advertising!!!" That's the point! Google monetizes nearly ALL of its ventures through advertising, whcih is why it can actually outgrow the pace of online advertising growth and still be the biggest player in the game. It rides the rising tide while still pumping water under its surfboard.
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Google has almost consistently outgrown the adoption rate of web advertising. What does this mean? Well, it means that although Web advertising is getting bigger and more popular as a slice of the total advertising pie, Google is getting even bigger and more dominant in the space – not less. Google is beating competition back even as the market grows!
Google ad growth
How does it do this? Google management thinks BIG, very BIG! Think about it...
Android - takes over mobile computing, literally! It has passed 900 million devices activated, with 48 billion app downads. That's nearly a billion, a force to be reckoned with for any developer, marketer or advertiser. Just two years ago, I had to cram this concept down the throats of develoepers and advertisers - One Reason Why Software Developers & Tech Firms Should Pay Close Attention To Research Boutiques Such As BoomBustBlog
Notebook computing that drives prices towards zero...
Commercial speed internet access (1 Gbit) for the price of cable TV (that's 100x the speed of cable internet access, both ways - up and downstream), meet Google Fiber and understand that now 14 year olds can produce and distribute their own TV shose from their mommy's basement. Speaking of which...
YouTube- takes over visual media production and consumption, as they now have subscription video channels ala Netflix (accept iy can upload your own content) - YouTube confirms subscription model, and here are the partners ...
Self driving cars - self explanatory
Google Glass - transforms personal and mobile computing
I can go on, as a matter of fact, I think I will. Google has released some blockbuster products and flops, the key is they're not afraid to experiment, and like Microsoft, they don't give up at the first sign of failure. Remember, it often takes 99 "No's" to get one "Yes". Google Wallet is one such product. It faced extreme industry pushback, primarily because it stepped on too many toes, particularly those toes that spend a lot of money on lobbying (the banking and financial services industry). Now, it looks as if management is going grass roots, bringing the world's most ubiquitous "Free" email system to the ability to send money as an attachment. That's right, GMail now allows you to send cash as a simple attachment. This is much more convenient than PayPal, wiring funds, or practically anthing else I can think of.
With this many projects in the pipeline, Google's revenue and profit potential dwarfs that of Apple - the purveyor of pretty, shiny things...
Subscribers, click the following links for my updated price targets on Google (click here to subscribe):
Google Q1 2013 Valuation Note - Retail
(Technology)- Google Q1 2013 Valuation Note - Professional & Instititional
(Technology)
The biggest risks to these price points are:
- A market that's being levitated by central bank magicians running short on magic spells...
- Regulatory pressure, which I feel is quite material and inevitable, but will not be a major factor in the near term.
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- advertisements -
See above for what I think of driverless cars.
What is it that I just can't TRUST anything Google??
Reggie...
I'd like to point out that Interac has offered email money transfers for some time now. They are global transfers and non-email platform or any platform dependent, other than using your on-line banking portal.
Google's prime source of revenue is ads.
They have taken many other eservices and made them free - squashes any potential competitor before they get started.
If adwords ever gets competition, google may have a challenge. In the meantime, meet the new global bank - they're called Google.
Trolls
Google
I suspect at some point that Google will be involved with a massive breach of privacy that will trip it up. Seems like only a matter of time.
As for Google Glass... It is a little too much in your face (pun intended). How are you going to deal with someone who is wearing it? Even it is family or friend? A stranger? I think that people may very well rebel against this.
FWIW…
Simple - make them sunglasses.
Lack of focus.
Throwing spaghetti at the wall to see what sticks.
The only good thing I know about g00gle is that it's driving Bill Gates nuts. Trading one bastard for a bigger bastard has never been much of a solution.
google's the new Microsux. One stop shop for all tech. solutions. Provides a nice front for NSA/CIA.
AnALYSTS can scramble... into their jets of hyberbolic Google Worship all they wish...
but down here on the ground us denizens of the dreary 'real world' can see with their own eyes that Google is the Dark Power personified... http://www.globalresearch.ca/june-6-9-bilderberg-meeting-behind-closed-d...
total takeover of civil society... privacy>??... that's so C20th! Any trade you can make a bennie buck on... rocks!
On the all new ZH "lite" ... who gives a shit! For those who complained that ZH was supposed to be a "financial" website... your ship has come in!
jus sayin!
You are evidently not a h i g h n e t w o r t h - or an i n s t i t u t i o n a l investor. Reggie isn't interested in penny ante stuff. Think BIG.
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Google Money and Bitcoin?
What's the difference and why are they shutting down Wallet?
Control.
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V-V
I have banished Google+ and search from my phone, don't use cloud, dropbox etc...took a while to disable the hidden little parts of google and the like.
No privacy with Google and that is going to be the backlash against them...their next competitor is going be trading on privacy...especially in the brave - New World that is the USA.
And Google+ my lap top...WTF have the done with the standard screen...the new set up is a total pain in the arse...I want the old easy to see and use screen back...pricks.
And, it is no accident that Google, along with Facebook, support CISPA. They want to strip mine your privacy and then have the ability to toss it to Eric Holder without having to worry about liability.
Welcome to world of tommorowI.
Google Glass is the new Segway.
It might be cool tech, but when you look that stupid using it, nobody will want to.
As much as I want to, I just can't use Gmail. I despise the interface,the new popup compose pane makes me want to throw a brick through my computer. At least Google did allow people to turn off the conversation view, which they said they would never do.
The new Google+ hangout system is very good. The problem is Google is starting to force users to use products they might not want to use to get the things they want.
Google is starting to follow Apple down the path where people inside the company know better than you do as to what you want. That never ends well.
Still nothing makes up for fact, THAT ONLINE ADVERTISING DOESN'T WORK.
Google is an advertising company.
Google Glass is just their way of sticking adverts on to every flat surface that you can see.
ONLINE ADVERTISING DOESN"T WORK.
You sir are correct.
you can send money with an email? whats the money worth again?
Earlier this year my family shut off all electronics for 10 days. We called it digital detox and it was awesome fun after the first few days of withdrawals. I'm of half a mind to banish electronics from our home forever.
"the key is they're not afraid to experiment, and like Microsoft, they don't give up at the first sign of failure."
right on reggie!!
Henry Ford once said..."Failure is simply the opportunity to begin again, this time more intelligently"...and this describes google perfectly.
With the partnership google has with the futurist, Ray Kurzweil, google's future, and the products they will come up with is going to be amazing.
Google is going to perfect AI software and machines that one day will be able to predict the future with a high degree of accuracy.
Great - once you can download yourself to the Cloud, does Google own that downloaded 'self' (and is its right to use that software likely subject to any worthwhile limits)?
Singularity: meet Litigation Hell.
machines that one day will be able to predict the future with a high degree of accuracy.
Shit for brains. That could only happen if machines are CREATING the future. No thanks.
duh, i am the great bernanke, what do i see in my crystal ball, uhm, a stock market rally. damn i am prescient
Google is on a roll. And as tech proves itself over and over... the wheel keeps turning. As long as man can dream, man will create, and when man creates, God smiles. Now as for investment returns at this point, does one invest in Google today? Personally I am now out of all stocks except for my little MJ penny plays and of course trying to acquire more metals as I feel they are on sale.
As the Apple lover around here, I have even been out of Apple for a while but am trying really hard not to invest at these price levels. If the Bernank is going to print, and the indexes need to grow, then how can money not continue to flow to these big indexing boys?
Google Wallet to me is the only exciting thing... I love the concept of money... gold, bitcoins, amazoncoins, silver, fiats, wallets, whatever..... always wanted to do things like email money or even better gold! But Reggie is correct in that their is no free market there. The big boys do not want, under any circumstance, a little boy to play in that game.
Finally, Money == Information, so Wallet really is the perfect next step for Google.
Where's the part about smart appliances? The Goog needs to know if my smart a/c is on using more than my share of kilowatts so they can turn it off. No killowatts for you!
That is why the Electric Companies are installing Smart Meters. Plus, where I live you can opt in to put monitors on your AC and Water Heater for a credit, so they can turn the appliance off if energy demand is high.
the solar buildout only works if you have one of these meters so you can put elec back into the grid. otherwise you need a battery storage system, which is about a practical as one of obamas electric cars. the next big thing is home natgas compressors, and conversion kits for existing autos. most of this stuff google is making isn't worth having, as more low tech solutions arise the need and desire for consumer goodies falls to nothing, and information is a joke. the information age is over, all this new stuff is about interaction, and signaling acronyms back and forth hardly beats the standard uses of language, beer, and social interactivity.
Also, not having to hire someone to go check your meter - saves a lot of money for corporate bonuses...
The problem I see is that as Google gets more and more invasive in our lives many people will opt out of their devices to keep their privacy.
I know they are trying to promote Google Circles but I refuse to use this platform for fear of intrusiveness into my data.
They have gotten too big and have almost become the biggest data collector for the Government.
I feel the same way. Unfortunately, my daughter, her husband, and all their friends don't even consider the privacy issues involved. Pretty much everyone under 35 or so doesn't give a fleeting thought to what is REALLY happening around them. Just the way TPTB want it. Very sad. It will be far too late when this upcoming generation wake up from their icrap induced coma.
It's the psychology of the times. I am 62 but have been in the currents of technological change so this doesn't frighten me as it does many older folks. Young people view the world through a different - not bad or incorrect - prism made possible by the incredible advances we are just beginning to see. Privacy to them can be understood as having opinions and doing things without judgement (a notion I disagree with). As for the complaint that the goal is monetizing data I answer, that has has been the goal since currency was created.
Reggie, Great insight into the Google model which is a true case of evolution in progress. What started as a search engine has become this enormous found of ideas and products.
Investing in a company like google is like taking the mark of the beast. Google is an evil company. People will put money/profits ahead of principles.
A driverless car pulls up and a message on your "glass" pops up and says the DHS wants to talk to you about your recent online searches.
NO THANKS
Scro: re driverless cars
If computers are any guide:
The car will come pre-programmed to take you to work and back at a particular time of day only. You'll have to BUY a separate app to be able to go home late, to go to the shops, separate apps to visit all your different friends, ... The car will choose which roads to take (to maximize road efficiency of course), you'll need a separate app to get where you want to go ON TIME, or via roads of your choosing ... at random times of day, the car will be completely inoperable while it downloads ??? - fuck knows what it was working perfectly before ... anti-virus software? ... Every week, at the most inconvenient time, the car will drive itself to the mechanic for "important tune-ups" while telling you that its street directory has expired, your dipstick is no longer compatible with the new engine and you need to buy some upgrades ... Every year the "On" button will be positioned in a different part of the car - on the door, on the dash, under the passenger seat (security) ... the car will refuse to go on unsealed roads unless it is allowed to go to the mechanic and get off-road tyres and 4 wheel drive ...
I CAN UNDERSTAND THE ATTRACTION BUT FUCK DRIVERLESS CARS AND THE PEOPLE THAT INVENT THEM (I too would enjoy the challenge of building something like that but face it - we all know how it's going to turn out - get an honest job renting out your anatomy or something).
... and after a year or two everyone will agree that they couldn't possibly give the car directions on where to go because only rocket scientists are that smart. And people who drive cars themselves will be feared, watched with suspicion and called "hackers".
I'm looking forward to a driverless car.
I drive a lot.
Feel like a zombie on long drives.
Time to get the human out of the driving loop.
Like this: http://www.youtube.com/watch?v=Kstob_NOLp0
Or the WB7 way?: http://www.youtube.com/watch?v=7Zu0vAMkpag
One step closer to the hive-mind.
if you keep one connected device on your person ...you are one drone away from extinction.
Oh shit, bitcoin... you've just been Googled
WB7 your iconistic boob adoration is the best expression of zany artistry; insolent intelligence gone rabid in jubilatory sarcasm.
Bravo.
I love it as detail and more, what it portrays as bigger picture.
I hope Reggie appreciates as he rings the Google big data bell.
When we are merchandised as objects we are no longer citizens with free will.
I was beginning to think you had gone nuts until I scrolled DOWN...
He is nuts, but WB7 is an international treasure.
We should fine a way to hide him from the thought poe-lice.
you should always have your boobs with a pair of nuts; shaken and not stirred. Awesome cocktail.
Oh boy, tomorrow's personal compliance monitoring system today.
I can hardly wait.
I think I understand Google's business model just fine.
How would you like to be a kid forced by your parents/school to wear these things all day while some app monitors every fucking second of your waking existence for possible "trouble"?
Combined with your soon to be mandatory, biometric ID/smartphone device there will be a running, 24/7, comprehensive audit trail of your entire life which will make '1984' seem like Disney World. If you think your Google goggle data won't be subpoena-able you’re smoking crack.
What ever happened to the promise of technology setting you free?
How about we first require all public employees to wear these things all the time and see how that goes? You know, to help deliver on that promise of a most-transparent-ever government instead of what we're actually getting which is individual Americans becoming more transparent than ever to the government?
Hopefully Google's biggest business risk is the day people see through the blatent doublespeak and realize that they actually are evil.
Buy the stock if you want, you'll probably make a bundle (like Khrushchev's moron capitalist selling the hangman the rope with which he will soon be hanged) but Google is the gas chamber of personal autonomy.
it's that alcohol monitor app I'm worried about
the feds now want .05, although texting while driving is more dangerous. they now run ads just like MADD, my son daughter died while texting and driving. but not to stray too far, the red light camera issue was in the news, the city has pulled most of them, (because drivers don't like them i guess) so the day after they covered one in a busy intersection, somebody ran the red and killed some people. the one time Big Bro might help us out [i believe in red light cameras, but i used to be a professional driver.] red light cameras aren't violating anyones privacy, and sure protect a lot of folks, i have seen how people drive when there are no red light cameras. cops never write a ticket for that (they're busy looking for real revenue like DUI) and you don't want to go to court with their police report in your hand. so please just a little big bro..
"What ever happened to the promise of technology setting you free?"
It all depends on implementation; a tool or concept is not good or evil, it all comes down to people. If the masses want to be surveyed all the time, well, as they say:
Democracy is the belief that the majority of people know what they want, and deserve to get it good and hard.
Democracy (quote unquote) has never been about the masses choosing yea or nay on every single issue. Our Republican form of government has been about an informed citizenry electing part-time representatives that thoughtfully voted in a manner they deemed for the best. Admittedly, this is far from what we have (uninformed citizenry, full time, voting for narrow interests) but it was the original dream.
Technology has set you free. You can sit and type on a PC all day without having to farm, make clothes, go hunting, build a house or birth a cow.
Boy, do I agree with you. We all have to remember that all data collected from your self driving car, your Google glasses, your e-mail, your data in the cloud is all the property of Google. You do not even Own your video, pictures from your Google glasses.
This is so Orwellian. It is unbelieveable.