Facebook is now Google’s ugly friend
As you know… Facebook tanked, and Alphabet reported glowing results on earnings last week. However, many may not realize the connection between the two companies. Both are internet advertising giants and make almost all of their money through advertising. But Google is winning because they are far more diversified than Facebook.
More popular services… Google has seven services with more than a billion monthly active users, which include: Search, Gmail, Chrome, Maps, YouTube, Google Play Store, and Android. Facebook has four: Facebook, Instagram, Messenger, and WhatsApp.
Google is a jack-of-all-trades… and is growing non-advertising revenue with the cloud, hardware, and Play Store while Facebook relies solely on advertising (a battle they are losing, currently). If that isn’t enough, Google also has 13 independent businesses with CEOs and budgets. All of this has analysts very excited about the future of Google because everything they touch turns to gold. To tie this out – Facebook is a declining ‘5’ while Google is looking like a solid ’10.’