Google really does have an incredible commitment to the open-source community, and I'd wager that very few here have any idea what it entails. If you're curious, Google has a blogspot where much of it is discussed.
One of the newest contributions is posted over at ArsTechnica, where they built an HTML5 "photo-booth" with Google open-source code.
Now if I owned Google stock, I might question the number of open-source projects they have in the pipe. I realize Google is a non-traditional business, but I really don't understand how they hope to benefit by giving away so much IP. Surely their must be a more direct way to monetize their developments, assuming that's what they're doing. I'm certain open-source proponents love all this free-to-use IP. Stockholders maybe not so much.
Don't start gloating yet, folks. Apple will drop 20% if it is one unit short of 42 million iPhones, 18 million iPads and 7 million Macs. I know this because Huberty, Munster and Wu have told me so...
Ugh, good morning world. Now I see what cameronj was talking about. Never mind that Google actually did plummet three months ago alongside Apple, he was talking about their quarterly earnings. Makes sense now, though my confusion was understandable.
With that thinking apple would need to cut Samsung. That would end all of Apples products.
The unit that makes phones is separate from the unit that makes stuff for Apple. With Google, however, it's all the same. Apple is lining a competitor's pockets with cash. Apple should get away from Google's services altogether.
AAPL net income in the latest quarter was $6.6B and it represented a 42.6% growth year-over-year.
GOOG posted about $2.7B net income and according to this latest quarter, it is growing now at 6.7% year-over-year.
The share price of a company is mainly determined by two factors: income and growth outlook. People usually think that a company that is not growing (or slowly growing) should have a market capitalization of about 10 times its income. It means that investors expect it to be able to earn its own price back in about 10 years of operation. This is again only the case of a NON-growth stock. The ratio of market capitalization and earnings is called P/E and so it should be around 10 in a poor economical climate (like today) for a company with no (or little) growth.
(The fair P/E depends on other factors as well, like dividend, etc., but I have simplified it for now since neither company pays dividend.)
Of course if the company is growing, investors will calculate that trend into the fair share price, which will result in higher P/E. That means that investors are willing to price the stock higher than a non-growing stock because the expect the earnings to increase soon. Thus companies with greater than 10 P/E tend to be growing and P/E lower than 10 tend to be shrinking.
Now GOOG has a very high 19.8 P/E even after todays drop, which means that the market expects it to grow very rapidly. However it's 6.7% growth rate would hardly justify a P/E of 11.
In the same time AAPL has a P/E of 15.3, which might be justified because of its high growth rate.
In the end the situation is like this. We have a company (GOOG) that is growing much slower than AAPL, still the investors are pricing it at a high premium over AAPL.
If actually GOOG was treated by the same standards by investors as AAPL, its P/E should be around 11. And that would mean that its fair market capitalization is around $120B, which would require a drop of almost 40% in its share price immediately (on top of today's drop).
Edit: Just realized that GOOG's P/E is actually around 30 at the moment. I must have been using some old numbers before. AAPL's P/E was correct. Anyway, my argument is even more valid this way. GOOG is even more overvalued than I thought.
That surge is just a small point and shoot picture of one quarter. It's an insignificant uptick. If you look at the calendar year Android outpaced iOS easily and will continue to do so. Twice as much. Computerworld has an excellent article that clears up this marketing spin for iOS. There is no denying that iOS is spiraling down to irrelevancy as Android continues to grow.
"So did Apple grow in overall smartphone market share from the third to fourth quarter? Sure. But so did Android. And Android grew quite a bit more, gauging by Nielsen's measurements -- twice as much, with a total share increase of 3.5 points compared to Apple's 1.7. Despite the boost in iPhone sales following the launch of the iPhone 4S, the gap between the two platforms has actually continued to widen."
You conveniently left out the profitability piece Slappy. What good is market share or activations if it doesn't result in profits? Answer: Nothing. By 2016, paid download revenue for apps is projected at $2.86 billion for the iPhone, with only $1.5 Billion for Android, despite its wider base and activations. Reason for that is Android whores out the lower price point and most of those activations are dummy phones. As the Android platform becomes more fragmented, updates unavailable, and profitability at half that of iOS, you will continue to see the developers vie for iOS as the platform of choice.
In addition, due to the stability, Apple iOS is also taking a hard lead in enterprise activation. This will determine who survives long term, and Android has not gotten off to a good start due to the perception among the corporate world of being a risky and unsecured platform. Android even scored below that of RIM, which is saying quite a bit.
I realize Google is a non-traditional business, but I really don't understand how they hope to benefit by giving away so much IP.
1. They benefit by harming their competitors. Give away a half-assed version of something for which a competitor charges money. Unleash a horde of lilliputian open-source developers to further dilute the value of the product.
2. They benefit by creating a fig leaf of open-source benevolence to cover their filthy data-mining genitalia.
You conveniently left out the profitability piece Slappy. What good is market share or activations if it doesn't result in profits? Answer: Nothing. By 2016, paid download revenue for apps is projected at $2.86 billion for the iPhone, with only $1.5 Billion for Android, despite its wider base and activations. Reason for that is Android whores out the lower price point and most of those activations are dummy phones. As the Android platform becomes more fragmented, updates unavailable, and profitability at half that of iOS, you will continue to see the developers vie for iOS as the platform of choice.
In addition, due to the stability, Apple iOS is also taking a hard lead in enterprise activation. This will determine who survives long term, and Android has not gotten off to a good start due to the perception among the corporate world of being a risky and unsecured platform. Android even scored below that of RIM, which is saying quite a bit.
Thats a narrow minded Apple fan point of view. In time Android will have 99% market share. Google will profit. Hardware makers will profit. Those that do not will drop off. The company that produces Android hardware that are successful will continue to grow as they grab customers from failed hardware makers. It's Windows all over again. Apple will gouge their current base with over the top prices to survive. In the meantime cheaper and superior models from competitors will benefit the buyers smart enough to avoid the Apple Tax.
Yes, some people here have disturbingly incorporated it into their belief systems. Doesn't mean there's any more truth to it than a 5-year-old's belief in Santa Claus.
Yes, some people here have disturbingly incorporated it into their belief systems. Doesn't mean there's any more truth to it than a 5-year-old's belief in Santa Claus.
Said the guy who has something about Apple disturbingly incorporated into his mind. How about enlighten us how Google is any different than Apple when promoting standard? Is WebM for a greater good? Is Flash open?
Comments
Why are you talking about Google?
Google really does have an incredible commitment to the open-source community, and I'd wager that very few here have any idea what it entails. If you're curious, Google has a blogspot where much of it is discussed.
http://google-opensource.blogspot.com/
One of the newest contributions is posted over at ArsTechnica, where they built an HTML5 "photo-booth" with Google open-source code.
Now if I owned Google stock, I might question the number of open-source projects they have in the pipe. I realize Google is a non-traditional business, but I really don't understand how they hope to benefit by giving away so much IP. Surely their must be a more direct way to monetize their developments, assuming that's what they're doing. I'm certain open-source proponents love all this free-to-use IP. Stockholders maybe not so much.
Don't start gloating yet, folks. Apple will drop 20% if it is one unit short of 42 million iPhones, 18 million iPads and 7 million Macs. I know this because Huberty, Munster and Wu have told me so...
Ugh, good morning world. Now I see what cameronj was talking about. Never mind that Google actually did plummet three months ago alongside Apple, he was talking about their quarterly earnings. Makes sense now, though my confusion was understandable.
By the way, if this happens again? Ugh.
I don't get it, why do you talk?
If only this were the pep talk you give yourself in the mirror every morning, we'd all be in a better place.
What are you, 11 years old?
Again- are you sure you're not looking in a mirror? 11 year olds always have to have the last word. You'll prove this point.
If only this were the pep talk you give yourself in the mirror every morning, we'd all be in a better place.
Again- are you sure you're not looking in a mirror? 11 year olds always have to have the last word. You'll prove this point.
Hey now. You can make fun of me all you want, just don't make fun of each other. That's not kosher with me or the rules.
Hey now. You can make fun of me all you want...
Had I known...
With that thinking apple would need to cut Samsung. That would end all of Apples products.
The unit that makes phones is separate from the unit that makes stuff for Apple. With Google, however, it's all the same. Apple is lining a competitor's pockets with cash. Apple should get away from Google's services altogether.
AAPL net income in the latest quarter was $6.6B and it represented a 42.6% growth year-over-year.
GOOG posted about $2.7B net income and according to this latest quarter, it is growing now at 6.7% year-over-year.
The share price of a company is mainly determined by two factors: income and growth outlook. People usually think that a company that is not growing (or slowly growing) should have a market capitalization of about 10 times its income. It means that investors expect it to be able to earn its own price back in about 10 years of operation. This is again only the case of a NON-growth stock. The ratio of market capitalization and earnings is called P/E and so it should be around 10 in a poor economical climate (like today) for a company with no (or little) growth.
(The fair P/E depends on other factors as well, like dividend, etc., but I have simplified it for now since neither company pays dividend.)
Of course if the company is growing, investors will calculate that trend into the fair share price, which will result in higher P/E. That means that investors are willing to price the stock higher than a non-growing stock because the expect the earnings to increase soon. Thus companies with greater than 10 P/E tend to be growing and P/E lower than 10 tend to be shrinking.
Now GOOG has a very high 19.8 P/E even after todays drop, which means that the market expects it to grow very rapidly. However it's 6.7% growth rate would hardly justify a P/E of 11.
In the same time AAPL has a P/E of 15.3, which might be justified because of its high growth rate.
In the end the situation is like this. We have a company (GOOG) that is growing much slower than AAPL, still the investors are pricing it at a high premium over AAPL.
If actually GOOG was treated by the same standards by investors as AAPL, its P/E should be around 11. And that would mean that its fair market capitalization is around $120B, which would require a drop of almost 40% in its share price immediately (on top of today's drop).
Edit: Just realized that GOOG's P/E is actually around 30 at the moment. I must have been using some old numbers before. AAPL's P/E was correct. Anyway, my argument is even more valid this way. GOOG is even more overvalued than I thought.
That surge is just a small point and shoot picture of one quarter. It's an insignificant uptick. If you look at the calendar year Android outpaced iOS easily and will continue to do so. Twice as much. Computerworld has an excellent article that clears up this marketing spin for iOS. There is no denying that iOS is spiraling down to irrelevancy as Android continues to grow.
http://blogs.computerworld.com/19607...urce=rss_blogs
"So did Apple grow in overall smartphone market share from the third to fourth quarter? Sure. But so did Android. And Android grew quite a bit more, gauging by Nielsen's measurements -- twice as much, with a total share increase of 3.5 points compared to Apple's 1.7. Despite the boost in iPhone sales following the launch of the iPhone 4S, the gap between the two platforms has actually continued to widen."
You conveniently left out the profitability piece Slappy. What good is market share or activations if it doesn't result in profits? Answer: Nothing. By 2016, paid download revenue for apps is projected at $2.86 billion for the iPhone, with only $1.5 Billion for Android, despite its wider base and activations. Reason for that is Android whores out the lower price point and most of those activations are dummy phones. As the Android platform becomes more fragmented, updates unavailable, and profitability at half that of iOS, you will continue to see the developers vie for iOS as the platform of choice.
In addition, due to the stability, Apple iOS is also taking a hard lead in enterprise activation. This will determine who survives long term, and Android has not gotten off to a good start due to the perception among the corporate world of being a risky and unsecured platform. Android even scored below that of RIM, which is saying quite a bit.
http://www.appleinsider.com/articles...st_risky_.html
I realize Google is a non-traditional business, but I really don't understand how they hope to benefit by giving away so much IP.
1. They benefit by harming their competitors. Give away a half-assed version of something for which a competitor charges money. Unleash a horde of lilliputian open-source developers to further dilute the value of the product.
2. They benefit by creating a fig leaf of open-source benevolence to cover their filthy data-mining genitalia.
You conveniently left out the profitability piece Slappy. What good is market share or activations if it doesn't result in profits? Answer: Nothing. By 2016, paid download revenue for apps is projected at $2.86 billion for the iPhone, with only $1.5 Billion for Android, despite its wider base and activations. Reason for that is Android whores out the lower price point and most of those activations are dummy phones. As the Android platform becomes more fragmented, updates unavailable, and profitability at half that of iOS, you will continue to see the developers vie for iOS as the platform of choice.
In addition, due to the stability, Apple iOS is also taking a hard lead in enterprise activation. This will determine who survives long term, and Android has not gotten off to a good start due to the perception among the corporate world of being a risky and unsecured platform. Android even scored below that of RIM, which is saying quite a bit.
http://www.appleinsider.com/articles...st_risky_.html
Thats a narrow minded Apple fan point of view. In time Android will have 99% market share. Google will profit. Hardware makers will profit. Those that do not will drop off. The company that produces Android hardware that are successful will continue to grow as they grab customers from failed hardware makers. It's Windows all over again. Apple will gouge their current base with over the top prices to survive. In the meantime cheaper and superior models from competitors will benefit the buyers smart enough to avoid the Apple Tax.
Google really does have an incredible commitment to the open-source community, and I'd wager that ...
Oh, we understand Google alright but what part of "when it benefit them" you don't understand?
10 BLN in revenue in the 4th qtr and the street still compains.
I feel this disrespect from the markets is still from the hurt they all took in the .com bust.
google is no pets.com
Oh, we understand Google alright but what part of "when it benefit them" you don't understand?
The part where releasing all this open-source code benefits them in a business sense.
The part where releasing all this open-source code benefits them in a business sense.
You seem to miss post 50.
You seem to miss post 50.
No I didn't miss his opinion. Apparently you consider it facts tho?
No I didn't miss his opinion. Apparently you consider it facts tho?
My fact about Google is much worse.
My fact about Google is much worse.
Opinions mistaken as fact happens a lot here.
Opinions mistaken as fact happens a lot here.
It's already beyond being opinion.
It's already beyond being opinion.
Yes, some people here have disturbingly incorporated it into their belief systems. Doesn't mean there's any more truth to it than a 5-year-old's belief in Santa Claus.
Yes, some people here have disturbingly incorporated it into their belief systems. Doesn't mean there's any more truth to it than a 5-year-old's belief in Santa Claus.
Said the guy who has something about Apple disturbingly incorporated into his mind.