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CHART OF THE DAY: Google's Massive Cash Flow In Context II
Microsoft Stock Hits 10-Year Low

10/16/09
10/16/09
That site has to just be a bottomless burn pit for dollars. #googlestock
10/16/09
The one money-maker they do have, though, is advertising. And apparently, it's a whopper. Which makes sense. Google gets tons of money each year from advertisers who enjoy their targeted, intelligent ads. Meanwhile, Google runs other services that boost their name and brand for pennies on the dollar of what they're ads bring in.
Good business isn't about minimizing losses, but maximizing gains. So long as they can keep up their superior ad targeting systems, they can burn through as much money as they have. And frequently do. #googlestock
10/16/09
If MS really did want to get a leg up rather than trying to drive Google into the ground, they'd be attempting to bridge the gap with Google and offering paid for time in their apps/sites - maybe even focus on great products rather than trying to take down your competitors. Then again, that'd be crazy. #googlestock
10/16/09
"By making your biggest products cash losers and your biggest money makers merely integrated into the product"
So they DO make money from their "cash losers" then??
"Essentially if someone like Microsoft actually does kill a free service of Google's they'll almost be doing them a favour."
Then how about their "biggest money makers merely integrated into the product" thing? It got killed too right?
The thing is, if some of Google's popular features die, most likely they're suffering bad rep like Yahoo and it'll severely affect they stock. #googlestock
10/16/09
yeah, but if the website(youtube) itself isn't bringing in any money at all, and they just take a loss on it, how is that good business? Even if other parts of google can pick up the slack for youtube it doesn't change the fact that youtube is a money pit.
just my opinion. I don't know how any of this stuff works haha. #googlestock
10/16/09
Let's say for my day job, I get paid $500/hour. Hey, I can dream can't I? Well, that amounts to $20k a week, or little over a million a year. On that kind of money, I can afford to pay for a nice house, all utilities, college tuition for the kids I probably have and still have some left over to sink into my dream DeLorean (If I'm gonna dream, I'm gonna make it rock). Sinking a few hundred to a thousand a week into that thing is hardly hurting my salary. It's a money pit, but it's one I can afford.
As another real world example, for the longest time, Sony was selling the Playstation 3 at a loss per unit. As in, every time you bought a PlayStation 3, Sony lost money, since it cost more to make them they were charging for it. Yet, they made enough profit on games and peripherals to more than make up for it. Nintendo has banked on this strategy for years, selling cheaper than average systems, and yanking money out of your nose through cheap plastic peripherals.
A single product can take a loss, even consistently, if the revenue streams of the company as a whole make up for it. Even if YouTube is losing money, until it threatens Google's huge ad revenue, it's existence is an asset....like as a place to put ads. ;-) #googlestock
10/17/09
Thus, even at launch every Wii unit sold made Nintendo money. And then Nintendo made even more money from all the games and addons.
10/17/09
The point is to not view any one product as an isolated revenue stream that must sustain itself. #googlestock
10/16/09
10/16/09
10/16/09
11/18/08
11/18/08
11/18/08
11/18/08
Second, Apple's share value tanked back in 2000, dropping 2/3 of it's share value within a fortnight. Then, Apple turned itself around.
It's too early to judge things but considering that Mr Softee has shed half its share value in the past 12 months, the boys in Redmond are going to have to come up with some direction.
Feel-good brand commercials only do so much. Yes, Apple has the Mac vs. PC ads. But Apple also has product ads that show the product in action.
Microsoft needs to have product ads. Show Windows 7 in action. Show Office in action. Show Windows Mobile in action. And if Windows Mobile isn't ready for prime time, then fix it.
Supplement it with testimonial ads like Apple's famous (and failed) Switch campaign. If I was a purchasing director, an ad featuring a secretary explaining why she won't use anything other than Word would be persuasive.
Microsoft has good brands and now it needs to not waste that brand value. If it can do that, the stock will go up. If it can't, Microsoft will be just another brand. If it's not a household name, kill it or backburner it. Windows Live is trash - not because it doesn't work but because it isn't special. People use GMail and Google Maps, not Hotmail and Local Live. It's distracting attention from core brands and should be cut. Office is (or should be) the flagship. Put it front and center.
Trim anything that isn't a long-term brand. Strengthen the brands. Advertise the products, not the brand.
11/18/08
I'm not a financial guy, so can someone explain why MSFT stock seems to underperform?
11/18/08
11/18/08
[Compay name here] Stock Hits 10-Year Low
11/18/08
11/18/08