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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 -
Complaints were raised about almost every new advance. "the operator will listen in" "people are reading my email" (probably true under this admin - lol), "Someone will steal my credit card during a transaction", "online banking/trading/shopping is dangerous". I'm excited over Glass and other technologies because they enrich life for those who choose to use them. Perhaps it's because my first and only thought was not how to use them for nefarious purposes.
I have very poor eyes and if Google can capture footage of my granddaughter for me to play back on my 27 in IMAC it will be worth it. Privacy has disappeared as it always had to. A technological world could not respond without massive amounts of data.
Go ahead, just don't use them in Portugal - or you could get arrested by filming or snapping people without their prior permit (and that just for your private use)...
"Privacy has disappeared as it always had to."
wtf?!?
Always had to is certainly how they look at it.
What I meant ("losing privacy" - doncha love how folks pick one phrase out of an entire diatribe?) was that we are slowly losing privacy even as we sit around and bitch on ZH all day. That trend wll only continue in a technologically changing world. ZHers may hate this, can move to a desert and live as a hermit but the interconnectedness necessarily means observation for data collection, collation and analysis.
Our hope is that folks with integrity do not use the technology they have. But this has always been the case. Western countries are much more capable of spying than the usual dictatorships - N Korea, Iran, Cuba ,Syria, China, etc. These nations must employ a cadre of secret police to make up for their lack of technology. Maybe the best we can wish for is a benevolent invasion of privacy with certain limits. I'm trying to be realistic instead of "I hate everything that's not like 1950"
"Complaints were raised about almost every new advance. "the operator will listen in" "people are reading my email" (probably true under this admin - lol), "Someone will steal my credit card during a transaction", "online banking/trading/shopping is dangerous"."
All of those things are true, happened, and continue to happen with increasing frequency.
"Maybe the best we can wish for is a benevolent invasion of privacy with certain limits."
Actually I think a codification of a right to privacy that allows for recovery of damages for violations of that right is closer to the best we can wish for.
actually i think that if you go off the grid, there is more chance for you to be completely anonymous in this society. a hundred years ago everyone knew who you were (the FBI used to interview your neighbors when they were doing a background check, anyone remember that?) now its all tech, and if you have no record you dont exist. now that we live in a jobless world, the old SSN, drivers lic ids aren't necessary.
Well except their privacy.
Monetizing your privacy...what could be more complicated?
its like a celebrity basing their entire existence on the audience, demanding their privacy... i vannnt to be ahlooan... silent screen star Greta Garbo
Great Scifi fodder here. What is reality? What is a filter? What is an overlay? What is privacy? What is god? What is comedy? Why do I see what I see?
Did you see that hat that kid is wearing - sheeesh.
All I see are tits.
quit looking at the advertising banners (google knows you are looking too)
People don't seriously get ads on their computer while on the internet do they? Ad block people Ad block Plus 2.2.4.
NoScript. http://noscript.net/
shouldnt that be "all i see IS tits.."
the meaning of the word IS, come on
"google wallet"?
that makes no sense
there is already bitcoin
sergei: it's possible to implement more than one digital currency and storage mechanism
bc sheep: huh?
what's a nice sheep like you doing in a place like this? (i am at the bottom of the scroll getting red arrows, posting disambiguities and talking to a sheep on a misdirected post)
I don’t mind the banners and pop ups.. a guys got to make a buck, .. but the moment a video starts with a commercial, I shut it off and would never think of linking to it.
Word up.. Goog
go get the adobe flash toggle.