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Boris Marjanovic

 
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  • The Internet Monopoly I Want To Own Forever [View article]
    7of9,

    Please explain how they would go about doing that? Break Google search up into several different search engines? This will never happen!
    Aug 15 10:56 AM | Likes Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    AnonymousAlpha,

    You should not use comscore data to determine search market share. They use a tiny sample size in comparison to StatCounter and they only look at desktop searches. In other words, comscore data is not very good.
    Aug 15 10:54 AM | Likes Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    lolstop,

    I used to work with several Wall Street analysts who used DCF models to value companies. They would first come up with an arbitrary fair value in their heads (usually 10-20% above the current market price) and then they would play around with the DCF model until it matched their arbitrary fair value. When it comes to valuing companies, DCF is a complete joke.
    Aug 15 10:52 AM | Likes Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    jj1937,

    This is one of the most ridiculous comments I have read in a while. Just because retail sales are down doesn't mean Google's advertising is not working.
    Aug 15 10:49 AM | Likes Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    Zipper0,

    I don't ignore actual capex. If you read my article more carefully you would see that I used "normalized" earnings to value Google. This means capex has been normalized too.
    Aug 15 10:46 AM | Likes Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    Bing's market share has been pretty stagnant. And the market share it did gain came at the expense of other search engines, not Google.
    Aug 14 11:37 PM | Likes Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    What can they possibly do? Make Google search break up into several different search engines?

    Google has plenty of competition, but it's not Google's fault that most other search engines like Yahoo! and Bing are terrible. People have the right to use any search engine they like, however, most choose to use Google.
    Aug 14 09:56 PM | 1 Like Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    What Google is doing is completely different from what P&G and others did. Google is more like a venture capital firm. Just like a venture capital firm, Google makes many acquisitions/investments because management knows that it just has to be right a small number of times. Just one of these acquisitions/investments needs to succeed over the long-term and it will more than make up for the 100 failures.
    Aug 14 09:52 PM | Likes Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    You are correct, a virtuous cycle is common to companies with increasing share and revenue. However, it is also what causes a network effect.

    The definition of "virtuous cycle" is a beneficial cycle of events or incidents, each having a positive effect on the next. This is exactly what a network effect is. Facebook is an easy example. The reason people use Facebook is because their family and friends use Facebook. It is a self-reinforcing mechanism that allows Facebook to be the dominant social networking website. The larger the network becomes the more dominant it gets.

    Google's various platforms like the search engine and YouTube also benefit from the same advantage. Let me ask you a question... let's say you filmed something funny and wanted to upload it on a video-sharing website. Which one would you choose and why? I bet it would be YouTube and the reason why would be because it has a massive user base (meaning more people would see your video). This is a classic network effect advantage!
    Aug 14 08:11 PM | Likes Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    Yes, I mentioned that. There are still over 4 billion people not yet using the Internet (which doesn't even take into account population growth over the next 10, 15, 20 years). Google can still easily double in size over the next decade. The addressable market is enormous!
    Aug 14 06:08 PM | 1 Like Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    It would be nice if Google spun-off YouTube. But I don't think it's going to happen since YouTube is basically an advertising business just like Google search. In other words, there is no reason for a YouTube spin-off.
    Aug 14 05:11 PM | 1 Like Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    This only includes desktop searches (mobile devices are excluded). The same source you gave says that Google controls over 91% mobile market share (which you excluded for some reason).

    The source I used (StatCounter) uses a very large sample size and measures market share based on page views only. Using StatCounter data, Google controls ~90% worldwide search market (PC+Mobile).
    Aug 14 05:09 PM | 1 Like Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    Google generates more than enough cash to be able to invest in various non-search related projects. Even if just one investment works out it will more than worth it.
    Aug 14 03:22 PM | 1 Like Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    It actually is 90% overall (including China). And Google operates in almost every country on the planet. In most countries its market share is nearly 100%.
    Aug 14 03:17 PM | Likes Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    I valued Google two different ways. The second way I valued it was by looking at a conservative growth rate over the next five years. Using this method further confirmed that Google is very cheap.
    Aug 14 02:44 PM | 1 Like Like |Link to Comment
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