Fact... Internet growth is slowing. That freaked out Google's parent, Alphabet, when revenues inched up just 13% last quarter. It was depression-worthy for Google investors, who were used to 25% revenue growth. So the bar was low this time, but Google cleared it (and then some) with a 19% surge in revenues.
- Fun Fact: Google's budget-friendly $400 Pixel 3A helped double sales of its smartphones.
Webster's should strike the word "search" from the internet... Google's dominance in online search is astounding (93% of worldwide searches) — and so are the ad dollars it harvests year after year. Now it's dishing out some of the $63B in profits it's made the past 3 years by buying-back shares of itself — That can make each remaining share worth more in the near term.
This 21-year-old has 2 problems... Investors look at Alphabet's ~$800B market value and think: should this be worth more or less? Google faces 2 major obstacles to up its growth game:
- Shockingly slowing internet growth: Mary Meeker's famous Internet Trends Report showed that internet users around the globe are growing at just 6% annually. That's the slowest growth ever, so Google's making up for it by sticking more ads in Google Maps and YouTube.
- Major antitrust vibes: The federal government started an investigation this week into Google and its gigantic internet friends for allegedly just being way too dominant for society.