goog

I know this is rare on this blog, but I couldn’t help myself in this situation. For those of you who know me well, you know I’m an avid investor in the stock market. I believe there is no better way to follow the pulse of the economy than to follow the market. You really get to see what’s working, and what is not. Google is working, and their earnings numbers yesterday were simply amazing. We’re talking about a 7 year old company valued at nearly $140 billion that grew revenues by 70% over the last year and profits by an amazing 92%! We’re not talking about boosting $100 to $180, we’re talking about profits going from $381 million to $733 million…real money. Can you imagine boosting your take home income by 93% in 12 months? How about if you were a giant company?

Google simply put has created one of the best business models ever by creating the world’s largest and most efficient advertising network. Their network is effective whether you’re spending $.50 or $5million. As more people move online (hard to believe more could), more advertising dollars will move online (it’s still only a fraction of overall ad spending), and they will move to google first. Point: That company still has room to grow, and the stock isn’t too bad either even at $455 a share. Simply amazing.

I will say, however, that 7 years from now we will be discussing another company that simply flew through the roof (maybe not quite on google’s scale) and we’ll be calling it something other than google. Just look at the history of the internet, the giants of tomorrow are not even created yet.