Google Business Model: Answering Universe. Ads

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I It is really easy to describe Google business model or how Google makes money. Google is a company that becomes a verb. You google “best college” for your daughter, “how to surprise girlfriend” on valentine’s day, and “best workout during isolation” to keep you in good shape. Google provides the answer – along with space for ads, The advertiser pays for that space.

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Cash Flow Statement Analysis: Drying.exe

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We begin this chapter with Bill Ackman’s answer when the billionaire asked about how he defines a great business. Our attention is the first metric he mentioned “Simple, predictable, free cash flow,1. Like Ackman, when performing Cash Flow Statement Analysis, we always interested in free cash flow – and Microsoft gives us a warning alert.

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  1. as continues..-generative dominant businesses – a business that Warren Buffett (Trades, Portfolio) would describe as having a moat around it” []

Amazon Stock Growth: Disruption of Disruption

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Breaking down Amazon’s income statement for the last 5 years, we found that the online store segment has almost doubled its revenue from 76.8 B in 2015 to 141.2 B in 2019 – a number that many companies in the US can only dream about. Interestingly, that segment contribution to total revenue has decreased from 71.4% to 50% for the same period. This means that Amazon Stock Growth is spurred by another source: The third party seller, subscription services, and AWS record 334%, 430%, 440% revenue growth respectively. Ladies and gentlemen, this is Amazon: a company with all miraculous growth for every segment.

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Investment Rule: Why Value Investor Missed Tesla

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Aswath Damodaran, one of the value investor gurus1 has said that Tesla is overvalued since 2013. At the end of 2020 – 7 years from his statement, Tesla’s stock price speeding up more than 100 times of its 2013 level. 7 years of the miraculous rally – it simply isn’t a one-season wonder. We even could call it long term, as an investment rule for value follower. So, can we said that value investing is obsolete?

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  1. according to people and his essays []

Financial Ratio Analysis: What Adobe Gross Profit Margin Tell Investor?

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Adobe stuns us with an 86% gross profit margin – exceeding even Apple, Amazon, Microsoft, and Google. Yet, in a contrast, its operating margin only at a 29% level. In 2019, The creator of Illustrator generates a 9.5 B gross profit margin but only 3.27 B converted as operating margin. The largest cost of software maker is not its software making or research. What does it mean for shareholders? We try to track this financial ratio layer by layer, from revenue to earning, from production to marketing strategy.

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