To put Alphabets revenue this quarter ($75 billion) in perspective:
Microsoft: $51.7 billion
Apple: $123.9 billion.
Microsoft: $51.7 billion
Apple: $123.9 billion.
Walmart has a higher revenue than all of the above (~140 billion)
You could have a ton of revenue, Walmart for example, but if you have razor thin margins that revenue won't necessarily translate into giant piles of money in the bank, which in the end is what most businesses are after.
The profit margins of the business of retail is not in the MAMAA league. Being a retail middleman is simply not as profitable as what the tech companies can do because they can scale at extremely low marginal costs, and barrier to entry is very high.
Amazon’s value lies in AWS and prime video/music/logistics/platform, not the part where you buy something shipped and sold by Amazon.com. Hence why Amazon removed the button to filter searches to only items shipped and sold by amazon, and why Walmart introduced their own version of a platform where they can make money as a platform, rather than a retailer.
Apple: founded in 1976 (46 years old)
Microsoft: 1975 (47 years old)
Google: 1998 (24 years old)
Perhaps it might work better with a comparison to a person, like "Alphabet made so much revenue this quarter that, assuming they had no expenses, after a full year, Alphabet would have roughly as much money as Elon Musk." But maybe not, because now you've just moved the problem to understanding how rich Elon Musk is.
Roughly 10c of revenue for every person on the planet every day.
- did not calculate, just saying :)
If you tried to acquire a similar stake in TSLA, the price would shoot up and it would cost you more. If he tried to sell all his shares, it would plummet and he’d get less out.
1: https://www.wsj.com/articles/elon-musks-tesla-share-selling-...
Meta $33.4 billion
Amazon $134 billion
pixel earns 100M..