Google is making a ton of money from YouTube.What?! That’s right, patience pays when building platform businesses. If a media company had owned YouTube, it would’ve ditched it a long time ago, when it bled money. But kudos to Google for having the patience to realize the long-term business opportunity. (via corybe)
» In other words … If you take out the charge, their profits were nearly $5.5 billion this quarter. This total beat the street’s estimate by a wide margin — a reported profit of 31 cents per share, versus what investors thought would be a profit of 12 cents per share. As a result, the stock made a fairly big leap this morning, surging 6 percent in pre-market trading.
» It’s not all up-and-up, though: At $510 million, the company’s fourth-quarter numbers, while still profitable, paled in comparison to the rest of the year. Still though, the fact that it’s a profit is definitely Dougie-worthy, no matter how you look at it.
OK, some more research on this AOL thang. Partly spurred by the fact that someone on Reddit claimed that the article said “profits” instead of “revenue,” we’ve been doing some more on the exact phrasing used in the article and elsewhere. We grabbed a copy from The New Yorker’s iPad app (we even paid money for it!) for comparison’s sake with the abstract. Here’s what we found:
» What this could mean: Our money is on the “profits” one possibly being correct, but the “revenue” one being wrong. Why’s this? Well, AOL’s hiring 40 journalists a week right now, but the dial-up service probably costs them very little to keep up. They’ve laid off a lot of old-guarders who used to work on the dial-up product and they’re not really expanding it. Instead, they’re paying tons of people to work on Patch, Spinner, AOL News,
Fanhouse The Sporting News, etc. They may be making more in revenues from the advertising side, but most of that is being spent on this massive content monster they’ve created. The New Yorker has at least one fact wrong here. Possibly two if the “profits” one is also wrong. (Disclosure for disclosure’s sake: I’ve freelanced for AOL News before but haven’t written anything for them in about five months.)
Want to know the best way to get investors off your back about your iconic CEO’s illness? Post numbers that make everyone criticizing you look like chumps. That’s what Apple did today. And even though Steve is still sick (and hopefully he’s able to deal with that without a problem), the numbers suggest that Apple does so much right that it’ll be hard for them to screw up the next couple of quarters. Just to give you kids an idea:
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