How Google Inc (GOOGL) Surpassed Yahoo! Inc. (YHOO) and, Inc. (AMZN) Over Past Decade


Google Inc (NASDAQ:GOOGL) has experienced a decade of tremendous growth since it launched its IPO 10 years ago today. Last night on CNBC’s Fast Money, analyst Dominic Chu compared Google Inc (NASDAQ:GOOGL)’s growth over the past decade against the growth of two other notable tech giants of 2004, Yahoo! Inc. (NASDAQ:YHOO) and, Inc. (NASDAQ:AMZN) to see how the three stacked up against each other then and now.

Google GOOG

When we look back at three key metrics in 2004, the numbers between the three companies were fairly similar, with Google Inc (NASDAQ:GOOGL) having a slight disadvantage in each metric. Their $3.2 billion revenues and $399 million in profit were the smallest of the three, compared to $3.6 billion/$840 million and $6.9 billion/$588 million for Yahoo! Inc. (NASDAQ:YHOO) and, Inc. (NASDAQ:AMZN) respectively. Meanwhile, their 3,000-employees number was more than doubled by Yahoo! Inc. (NASDAQ:YHOO)’s 7,600, and tripled by, Inc. (NASDAQ:AMZN)’s 9,000.

In the decade since we’ve seen both Google Inc (NASDAQ:GOOGL) and, Inc. (NASDAQ:AMZN) storm ahead, while Yahoo! Inc. (NASDAQ:YHOO)’s mostly been left in the dust. The latter’s revenue and profit have increased only marginally over the past decade, while their employees have grown just over 50% to 12,300.

Google Inc (NASDAQ:GOOGL) and, Inc. (NASDAQ:AMZN) on the other hand have experienced hyper growth. Google now has over 50,000 employees, while Amazon boasts more than 130,000. Revenue for the two giants has also exploded, to $63 billion for Google, and $82 billion for Amazon.

The biggest difference between the two is that Google’s profit has also grown substantially, to $13.6 billion, while Yahoo’s has actually decreased to $181 million despite their massive growth. And that, according to Chu, is the biggest factor determining the love affair investors have with Google’s stock, compared to Amazon’s.

“[…] Some really hyper growth, but when you can translate that growth in employees, profits, and revenues into a stock price gain like Google, that’s what investors love to see,” Chu said.

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