ANALYZING GOOGLE FROM SCRATCH!

Anyway, the the key here is that I bought this Microsoft with partial information, and I did this on purpose. Um, even though it was a loss, I kind of wanted to show it could have easily been gained as well. But I wanted to show you a method in trading that's really important, which is, um, basically that if you do an analysis where you end up, um, changing your mind, which traders have to do every day, it's really, really, really important to quickly change your position. You know, a lot of people, when they get new information, they want to stick to their, um, old opinion because it feels better. Um, am I short Microsoft? Shoot. Put 100 shares, right? Oops, oops, oops. Thank you. That was a mistake. And of course, it went up. Um, I thought there was something wrong. Let me make a new column here. Um, well, let me get out of it first. That's the key. When you make a mistake on trading, that's the other important thing to do. Thanks for pointing that out. Autofilled. Okay, now I'm out. So I lost 62. 61. The 50 came by accident. Um, 10 was intentional. Oh, well. Anyway, point is, um, [Music] it feels much better emotionally, mentally to, um, try to kind of convince yourself that you're right. And, and that's maybe the, the way most financial mistakes are made. And I know that sounds crazy, but it's true. So many financial mistakes are made that way where, um, people just, uh, don't want to admit they're wrong. You know, if you get some new information, for example, you're convinced that, I don't know, let's go to the t-shirt store again. You're convinced that the t-shirt, t-shirt store stock, wow, t-shirt store stock is a great investment, um, for whatever reason you think it's a fantastic investment, and you buy stock in this t-shirt store. And the reason you think it's a great stock is because you like the CEO. And then the CEO resigns. And then you don't sell your stock. You say, you know what, I like the t-shirt store stock anyway because the revenue is growing so fast. And then it's like, okay, well, cool, I guess. But then you also, uh, see the next quarter, the revenue, um, isn't growing fast. And you say, well, I like the t-shirt stock, uh, for the long term. It's like you keep changing your, your mind. And it's the worst thing a trader can do. It's sometimes called thesis drift in the industry. Thesis drift. So with thesis drift, you have a big risk of just constantly wanting to prove that you're right because you don't want to admit. And this could be psychologically, um, it's a really small market cap. I'm not going to look at this one. This could be psychologically, um, you could be aware of it, or it could be subconscious. And it could be one of these things where you just kind of don't want to admit you're wrong. So you keep reinforcing, um, reinforcing what you, uh, believe and, uh, for what you think you believe. So anyway, it's, um, it's kind of a terrible thing to end up doing. Um, and it's how, like I said, most, most investors and traders make big mistakes that way. Um, if you're wrong, either because of the price, but if you're wrong, especially because you, the reason that you've invested has changed, you just gotta get out as soon as possible. Um, you know, and, and you can't. It's sort of like poker. Like if you get dealt, let's say you get dealt two sevens in poker, and the guy next to you, you think he has two aces, and you're pretty sure because he goes all in, and you fold. And then the board ends up being seven, seven, king, three, four. You say, oh my god, I should never fold. It. I had, um, I would have had four sevens. I would have beaten him. I would have taken all his money. Well, it's still a bad bet, right? So you're not supposed to sort of sit there and say, well, I should have stayed in after the fact. If things changed, it's time to change your investment. And then if it goes up or down, whatever like that's something separate, you know? But if the reason you're in has changed, it's time to change your investment. You know, that's something that seems really simple, but it's very hard to do. If you've ever traded, I think you know what I'm talking about, where it's really difficult emotionally to come to grips with, uh, being wrong. It's like one of the most painful human, it's like innate from our basic human experience. All right, so we got this price. Oh, and I'm gonna, I've uploaded, uh, if you want to go find that Microsoft model, let me upload it real quick to GitHub. Let me save this first, real quick. It's mentally difficult for me to have an open, uh, open dialog box. All right, so CD code, CD models, Microsoft, cool. Okay, so you should be able to see this on GitHub. You guys don't use GitHub, it's, um, for programmers, but it's really a file version control system. So you can do quite a bit on there. Um, see which repo this is. And models, which is a brand new. There we go. All right, so you can get this github.com forward slash martin shkrali forward slash models. So there's only one model there, but I'm gonna put all of them there. There's gonna be hundreds of models in here. So you can add, remove, you can change the model if you learn how to use this. There's a ton of, uh, ways to sort of change up the model. And, uh, I should have made that locally, but regardless, um, there's a lot of tools on GitHub, but again, it's, it's fairly, uh, intricate and sophisticated tool. Why am I sharing all this for free? Well, I'm glad you asked that. When I was, um, accused of being, uh, most hated man in America by the media, and, uh, I was, uh, had my character assassinated by people who prey on any story they can to get clicks. My pleasure to sort of show people, um, for example, there's this story where it was called farmer bro, and this came from Axios, I think. And I never, um, it was a funny story because it was a, there was a photo of me, and I don't think anybody knows really knows the story. There's a photo of me. Let me see here. It was a photo of me in a Lacoste shirt. If you know anything about Lacoste polo shirts, they're not, was it Axios? I think it was, um, maybe it was a different, uh, journal. Let's see. But anyway, it was a photo of me in a La Costa. Let me find the photo actually. Okay, let me change the, uh, date and just start over again. So anyways, this photo of me, and basically this like funny shirt, and let's see the images. Oh man, it's just a polo shirt. There it is. All right, yeah, this is all false as well. But anyway, where's that photo? Here it is. So this is the photo I took, uh, on my Twitter. And this is where the term pharma bro came from. This is our office, and I don't wear sunglasses, and I don't wear gaudy watches. But I found one, and I was wearing this shirt, um, and I put this video of Florida up on here. Um, and there was a joke that we had that was, uh, basically it was about some stock trade we made, and I was doing it for my friends, and I put it on my, my Twitter, where I had almost no views on my Twitter because I wasn't the pharma bro yet. And of course, I look like, kind of like a frat bro, right? It kind of looked like a douchey jerk, a privileged white man, as they say, a cis hetero white scumbag. And, uh, um, and so, you know, they basically said, oh, this guy's pharma bro because, you know, there's another insult called tech bro. Let's see if there's a tech bro thing. What does a tech bro look like? Something like that, I don't know. More like this, right? Going on a date with the tech bro. There's more tech bros. And the whole idea is that these tech bros are d-bags. So they called me farmer bro because, look, I look like a d-bag. Well, I did these streams, and then I started streaming a lot, and people said, why are you streaming? You know, this is crazy. And I did years of streams, um, because I wanted to combat this image of me being a quote unquote farmer bro. I've never been in a fraternity. I've, you know, the least of it, I'm a computer geek. I'm not a bro of any kind. So to me, it was a nice way to sort of like show a different, not a different side of me, but show the real me, um, because that photo again was supposed to be a joke, but it was the only photo that media could kind of find right away. They're like, oh, look at this [ __ ] you know, and it sort of contributed to my, uh, this media firestorm. Um, I'd raised drug prices many, many times before, and there was always a good explanation for it. But in this case, it was, uh, you know, the image was more than enough. So anyway, just a funny. So I've been, I've been having fun as well. I mean, I, I, when I started streaming, I was mostly trying to change my image or change the perception of me, and then I ended up having a lot of fun. So to me, it was, uh, just great. So I'm building this model from scratch. These are the six questions I ask of every company I look at, immediately private, public, any company. These are the six things, and I'll explain them all in a second. I'm gonna get some water first. Um, I'll be right back. It could be literally 30 seconds. You can time me. All right, back. Hopefully that was, uh, not worse than 30 seconds. Oh, what's up, Lauren? Miss you. Love you. All right, so we're gonna look into, um, Google, sometimes called Alphabet. So their stock price is the first thing to look at. And I don't say when I say look, I really mean jot down and analyze, or maybe analyze is the right term, but scrutinize. I don't know. And, uh, so anyway, the first six things I look at, and sometimes this is called the capital structure, it's one way to look at it. So there's some kind of share price, even in private companies, and then there's shares outstanding. So how many shares is the company divided into, right? That's what's your share of the company? Well, let's take a look at Google. And so I just go to Google and I would type the company's name, which in this case is actually Google, maybe it's Alphabet, and I would say Alphabet investor relations. And that's kind of how I got to this website. All right, so I'm at the investor relations website, and I'm looking for shares outstanding or shares in general. It's usually an income statement towards the bottom. It's also sometimes in the balance sheet, as you can see. So here it is, 682 million shares outstanding. So I just type that down and I note what date it's for. So this is, oh, I'm looking at the wrong one. This is the column for 2021. So let's look at the column for 2022. More recent. So it's 667,551. I just type Q122. All right, so there are 667 million shares of Google, right? So to buy one share, you need to pay $2,000 bucks roughly. But if you, if you, uh, bought one share, right? So here's your zoom in here. Here's your, your share. You bought one share, right? Well, the amount of shares, all the shares, right? The 667 million, 551,000. So you own one over, right? One over 667, 667 million shares. Not much, right? You don't own much of that company, do you? Uh, and how much did you pay? Well, we can multiply it by the price. So you paid $20, $2,200, right? Well, how much would it cost to buy all of them? Well, how do we figure that out? Well, if it cost me $2,208, $2,207.85 to buy one share, well, what if I bought two shares? Okay, that's about $4,000. Well, how about 10 shares? That's $22,000. That's about the price of what, what do you, what can you buy for $22,000? I was gonna say a new car, but I don't think you can even buy a new car for that. Um, $22,000. Maybe like an iced out diamond necklace, something like that. Maybe a nice dinner, per se, here in New York. Dinner for four. Um, I don't know. Maybe the, the bed that my cat sleeps in. Trashy, the cat. Trashy's bed, probably around $22,000. All right, I'm just kidding about that. Trashy sleeps in a $20 bed, but it's comfy. All right, how about for 100 shares? 100 shares would be $22,220,000. I was going to say that could buy you a house, but not really. Um, not New York at least. Um, so for $220,000, what can you buy? What can you buy? Um, it costs around $220,000. What would you say? A really, really expensive, uh, diamond necklace? I don't know. Engagement ring for Lauren? Something? Who knows? Uh, all right, how about a thousand? A thousand shares. All right, $2 million. Now that's a, that's a half decent apartment in New York, but how much, what percentage of Google would you own? So you can buy a thousand shares of Google for $2.2 million, or you can buy a new apartment in New York City, right? Um, but what percentage of Google do you own? You can actually calculate this. A thousand divided by 667 million. Oh boy, what percentage is that? It's giving me this weird thing. All right, well, it's not 1%, is it? 0.1%? Nope. Is it 0.01%? Nope. Is it three decimals? Four? Looks like it's four decimals. So you would own 0.00015% of Google, even though you're spending $2 million. So how much would you have to spend to own 1%? Well, let's keep going. You bought 10,000 shares, $22 million. Well, that's a lot. That's probably the most expensive house in almost every city, only for, say, like New York City, maybe LA, a couple cities that you have the most expensive home. $22 million. For most people, that's enough to retire. Um, that's only just 10,000 shares of Google. You might get 10,000 shares of Google just for working there for a couple years. It's a hell of a company to work for, isn't it? Um, they just give out stock for their employees. Let's say at 100,000 shares of Google, maybe you're an important executive there, maybe a big hedge fund, and you're buying Google stock. $220 million. That's almost enough to buy a hockey team. Definitely the most expensive home of all time, most expensive art of all time. But look at the percentage. Your stake of Google is still close to nothing. 0.01%. It's not even 1%. It's not even close to 1%. Let's say you had a million shares of Google. You were good friends with the CEO of Google, maybe you're a top superstar at Google. They gave you a million shares of stock. That would cost you $2.2 billion, right? And you still don't even own 1% of the company. 0.15%. Well, maybe let's try 5 million shares. Well, that's $11 billion. That would put you on the Forbes list, right? You'd be in the top richest people in the world, and you wouldn't be towards the bottom, you'd be like in the middle or towards the top end of the list. And you still don't even own 1% of Google. So anyway, the point here is that there's something called market cap, and market cap is the stock price times all the shares. So the reason these percentages are so small is because Google is so big. It's a $1.5 billion, I'm sorry, $1.5 trillion company. So if you multiply the stock price by all the shares, these are millions. So this is not 668 shares, this is 668 million shares. So I have to add millions to this. So it's $1.473 trillion dollars of market cap. That's if you bought every share for that price. That's what you would get. So kind of an interesting thing. It's the number three thing I look at. It's the first thing that's not self-explanatory. Um, the first two are kind of self-explanatory. But like I said, these are the six things I look at for every business I ever look at. I've looked at hundreds or thousands of these. Um, so what's the third? What's the fourth and fifth thing? Well, look at cash and debt. So let's get the cash and debt. That's going to be on the balance sheet. The balance sheet is, uh, one of the financial statements. There it is. They got $139 billion in cash, according to this. I include anything that's like cash, so marketable securities counts for me. Here's some more cash. They have $29.549. All right, so that's $169 billion of cash. Quite a lot. But they have some debt too. So we gotta look at the debt. That's the fifth thing I look at. So here's some debt, and yeah, it looks like that's all the debt they have. Google for a long time was debt-free. That's not a bad thing, by the way. It's normal to have that as a company, at least. All right, so Google has $170 billion in cash and, uh, $15 billion in debt. So their net cash, right? Their net cash would be what? Cash minus debt, right? So $154 billion would be their net cash. So if you take their market cap and you subtract, oops, you subtract the net cash, you get something called enterprise value. And why do we care about enterprise value? What does that mean? Well, that's $1.3 trillion. Anyway, if you're counting, that's the enterprise value. But what, what does this mean? Why do I care about it so much? It's arguably the most important of these six. You can call these the big six if you want. You need a fun name for them. Sometimes they will call that. So what is the enterprise value? Well, it's pretty, uh, non-intuitive. So I know there's some people watching, so we'll see who can figure this out the best. I told you what the formula is, right? It's just market cap minus cash plus debt, or market cap minus net cash. And just call this net cash if you wanted, and you call it the big five, but, um, what does it mean intuitively? So enterprise value is the value you are paying for the business itself. So you're excluding the cash value of the company. Why, why would we do that? Well, let me tell you a story. Let's say I had Shkreli, well, let's say I was offering you a building. So I want to offer you this building. I own. I've owned it, passed it down my family. My dad passed it off to me. It's on, uh, in Brooklyn, and I want to sell you this building for $5 million. It's okay, I'll think about it. And you come back in the next day and you say, well, how would you want to do this deal? How would you want to sell me the building? All right, well, I got an LLC. It's called Shkreli Building LLC. And then you say, okay, well, what is Shkreli Building LLC? Well, I say, it's simple. It's one deed for the building in Brooklyn, and it's got, and that's what it is. And they said, okay, well, that sounds good. But do you ever have a bank account for the building? I said, of course. I got a one JPMorgan Chase bank account that the rent goes to, okay? Or the management company's fees go to, whatever it is. Um, and the person comes back a day later and says, hey, Martin, how much money is in that bank account? Oh, there's $100,000 in it. Said, okay. The guy comes back later, his name's Jake. Jake comes back later and says, Martin, I got, you got a deal. $5 million, right? And we signed a contract where he would buy the building, the Shkreli Building LLC, because the building LLC contains the deed, right? I can sell him the deed directly. But let's say for argument's sake, I'm selling him the LLC because he wants to have his own company and all that stuff set up. He'll change the name from Shkreli Building LLC to Jake Building LLC. But did I really sell him the building for $5 million? That's the question. What do you guys say? What do you think? No, of course not. He, he, he's getting $100,000 for free, right? So really, he's paying $4.9 million for the building plus the $100,000 in cash, right? All right, well, let's do the opposite. Let's say it's, uh, Lauren Building LLC. And Lauren comes to me and says, let's say this is LA. Well, I got a building in LA. I said, okay, well, what do you want to, uh, sell me the building for? And Lauren's very beautiful woman, so she says, uh, it's a $10 million building. Okay, well, I'll think about it. Lauren, uh, she's very convincing. So I said, all right, I'll, I'll do this deal. But what else? What else is going on? How do you want to do this deal? She said, well, I'm doing it through, um, this LLC. I said, okay, yeah, that's standard way to do business. What's in the LLC? Well, I got the deed and I got a bank account. So bank account? Well, what's in the bank account? She says, oh, it's nothing. There's a, this is the debt for $5 million. It's okay. Well, when were you going to tell me about this? Oh, you know, it's just a detail. It's a detail. But if I bought this LLC from you, I owe the five, I own the all the $5 million because I now own this debt too. So I'm really paying $15 million for it, aren't I? I got to pay the $10 million to her and then I got to pay another $5 million, right? We gotta pay another $5 million for, for the debt that she, that the building has, which isn't such a bad thing necessarily. Maybe this building's worth $100 million, but the debt counts too, right? So anyway, that is how enterprise value works. So Google's enterprise value is a little different from the market cap, the same way that $10 million dollar building is really an enterprise value of $15 million, or the $5 million dollar building in Brooklyn was really an enterprise value of $4.9. Well, Google has a lot of cash, so it's real value, the corporate value, the enterprise value is lower than, uh, than it looks. It's only $1.3 trillion instead of $1.4 trillion or $1.5 trillion, but it's a big number, but it is less technically. So it's important. Anyway, we, somebody seems to say that we're close to our stop loss in, uh, the market, which is true. It's funny, I shorted all that Microsoft, and Microsoft, I covered it immediately because I made a mistake, and it's about a $50 mistake. But if I didn't cover it, I would have made a lot of money. But again, I'm happy to not, uh, make that money because it was a mistake. I just pressed the wrong button. I put 100 instead of six. I'm so happy one of the viewers showed me because I would have kept it there. And why am I happy? Yes, technically, if I didn't look at the chat, I would have, uh, kept it there and actually would be up $50. But I don't want to be in the business of just getting lucky, right? I'm not interested in that. I'm interested in making good investments continuously over and over again so that I can constantly profit. Um, if I started getting lucky like that, then, well, what's the point, right? I might just click a random button and see what happens. I think that's what some other guys do. So anyway, if this, uh, SPY short hits, um, 370, where we are gonna get out, um, I'm sorry, long. This is long. We're long 12 shares of SPY. We will get out at 370. But it's not quite a 370 yet. And so it has some chance of coming back. It doesn't look good. It doesn't look good at all. But we'll see. I was short this morning. I just told you the story of my friend who convinced me to go long. I want to give him a lot of [ __ ] next time I see him. Of course, he's, he's trading for a lot more than $50. That's lunch money. Um, but especially here in New York. Anyway, let's make a model for Google. So this is an income statement that we're trying to model here. We'll do this. Used to doing hundreds of these. So in fact, I have a Google model somewhere, but I figured I'd start from scratch just to show you guys how it all works. So again, a lot of this is just Microsoft Excel. You get used to using Microsoft Excel for a while. I'm actually going to put this over here because to show you it's much faster than going back and forth. It's, uh, also fast if you have a, uh, two, two monitors. It's not that important though. All right, so you can see, uh, that the Q1 column is actually towards the right. Most financial statements is going to be on the left, and the last year is going to be on the right. But they do it sort of backwards, of course. I think Google will probably tell you that everybody else is doing it backwards, which may be very well be true. So anyway, um, so you can see their revenue they booked is more than Microsoft. It's $68 billion, even though Google is a much younger company than Microsoft. It's, uh, bigger technically by revenue. What was the Microsoft revenue again? Let me just pull this up here. Well, it doesn't want me to do that. The OneDrive thing is a little finicky. Actually, I don't like it for this reason, but there's no perfect system for this kind of thing. Um, I might be actually putting this in the wrong place. So hold on one second. Let me go to desktop code. So now I'm doing these more publicly for you guys. Oh lord. Okay, let's see. Oh boy. [Music] Okay, that should work. Yeah, there's no perfect system, um, unfortunately. Excel has its limitations. Google Sheets has its limitations. They'll have their own limitations. So where is that now? I'm getting annoyed. When I get annoyed, bad things happen. Don't annoy me. I'm just kidding. I said I wouldn't entertain, but I can't help it sometimes. Is this case sensitive? Really? I hope not. It's the only thing I can think of. [Music] Okay, but why? But why? Yeah, like, but why? All right, let's just open it like that. Um, yeah, you see revenue from Microsoft last quarter was $49 billion, right? For Google, it was $68 billion. So technically, Google sells more product than Microsoft, right? In a quarterly basis? Isn't that crazy? Microsoft, let's, let's figure this out. Microsoft founded, I want to say 1978? No, 1975. That's right. Bill Gates was, uh, for what happened in 1978? Maybe an IPO? No, not quite that fast. Something happened in 78. Is forgot what it was. Oh, yeah, I guess it was the photo. [Music] [Applause] [Music] [Applause] Welcome to the history of Microsoft. It was the year 1978. Shadow Dancing by Andy Gibb topped the Billboard charts for the year. The United States banned chlorofluorocarbons as spray propellants for damaging the ozone layer, and in vitro fertilization found its first success with the birth of baby girl Louise Brown in the UK. But in 1970, we didn't want to have a single product that was a dominant product. We wanted to hire in more software people and have a full product line in a sense. The, uh, one of the earliest things we decided to do, Bill Gates was my hero, man. This is 93, was to make available on the microprocessor everything that had been available on them. My dad and my cousins and my uncle would all talk about Bill Gates. Any computer, and that's why we did the languages, COBOL, COBOL assembler, um, COBOL's a common, uh, business orient, business oriented language, I believe it's one of the first computer programming languages. Um, business object language, business, uh, common business object language, something like that. Um, so anyway, Microsoft is 1975, right? Okay. When was Google? Was that 94? Would you say? Oh, 98. And that interesting? So, so Google had, Microsoft had, and Microsoft's arguably the most successful business of all time, right? 23-year head start. 23-year head start. Microsoft had. Google still has more revenue. How crazy is that? So, so, um, it's interesting to see that, uh, uh, even though it has more revenue technically, Microsoft is still more valuable, right? The market cap of Microsoft is higher. It's $1.9 trillion versus Google's $1.5 trillion. It's pretty close though. 23-year head start. It's really remarkable. So you got to look at the age of a company to determine its success as much as anything else. This also works that way with wealth. Uh, it's very wants it easy, but it's easier when you have more time to get wealthy. That's why a lot of the wealthiest people are very old. That's why, uh, someone like Mark Zuckerberg is very, very impressive because he's wealthier than most people, and he's also still quite young. So anyway, you do the formulas in here, and I won't belabor that. But like I said, they should all sort of fall together. And at some point, we'll go through exactly how the balance sheet works, or they, I'm sorry, this is an income statement, how exactly the income statement works and what it means. Um, but suffice it to say that it's the, sometimes called the statement of operations, because it's a, uh, it's a snapshot of how the business did in that quarter. And what I like to do is I like to list them all side by side because this is useful to look at, but it's not telling me about the quarter before, the quarter before that, or the quarter before that. It's only giving me this last quarter and the year before quarter, which is helpful, but it's not everything. And I'd like to see everything, see a picture of the company my way. And that's why making these models is a highly customized thing. You can't just make one template. You can't make, um, a computer program that's going to do it all for you. This is the best way to do it by far, and I've tried every single way. Got my own, a lot of my own special tools I made myself with a team of 10 programmers that work for me. So, um, let's see. I'm gonna put a decimal point here. All right, oops. I put COGS and gross profit backwards here. COGS is cost of goods sold. So that's the cost of making the product in question. For Google, that's actually mostly traffic acquisition cost, I believe. All right, so the gross margin is pretty low, actually, for a software company, but it's not that big a deal. Their operating margin is quite high, which we'll talk about later. But let's look at revenue growth. Very fast, 23% revenue growth. And that's, you know, like I said, they're, they're one of the, they have one of the best products ever made, ad machine. But if you took Google's earnings, $66 billion a year, because last quarter is 16, so you multiply 16 times four, and you get $66 billion. Um, we're gonna divide enterprise value by $66 billion. So we get 20 times earnings. That's actually quite cheap. All right, so I'm gonna make a mistake here. You should not do this. I'm just gonna go buy some Google right now, just because, won't be too boring here. All right, so what do we do? Let's buy one share, Google. Two shares. Let's buy two shares. The stock price is so large, you can buy a half a share if you'd like. But I'm gonna buy two shares. I'm just gonna buy at the market. All right, autofilled. Thank you. So we bought two shares of Google for $21.99.84 piece, um, and that's about $4,000. You can see. So we're long Google, AMC, and SPY. Um, so we're all long. We don't have any shorts. So we are betting basically the market will go up. We also have some cash, $41,000 of cash here. So most of the account is not invested. About 20% invested. But, you know, we'll see how that goes. Again, I don't recommend you invest with that kind of decision making process. It takes a lot more to make an investment than that. It takes hundreds of hours of homework and research. But I just wanted to spice things up a little bit. Anyway, it's not, not gonna be too risky at two shares. What source that can happen, right? Um, let's continue. Sorry, I'm not paying attention. I just want to focus on this for a second. All right, so actually the income statement's the most important thing for Google. I think the cash flow statement. Well, cash flow statement is pretty important. Let me just jot down these as a shortcut. These are the three things I really care about: cash flow from operations, CapEx, and free cash flow. All right. All right, cool. All right, so I want to look at the next quarter or the prior quarter for Google. And again, this is, these are really brief, kind of, uh, the very, very brief, kind of, uh, processes for looking at a company. There's a lot more to doing all this. For example, here's their revenue breakdown, which is so important. I'm going to stop here and do it. They got services, cloud, other bets. Okay, so, and then let's put FX in as well, why not? All right, so services for Google is what you would expect, YouTube, it's, uh, search, of course, uh, so forth. Cloud is different. That's the Google Cloud Platform, which is what programmers use. It's like Amazon's AWS. You can see Google Cloud's growing somewhat fast, much faster than the rest of the business, right? And how do you do that calculation? Well, let's do it in a second here. You take new, which is the new number, right? So let's do, uh, services growth. So we take equals and Excel to get the formula system. We go to the new number, which in this case is 61, divide by the old number, and this is how we do a comparison, and we subtract by one to get it in a percentage format. And they grew, uh, services by 20%. So again, for them, services means YouTube and search and all the stuff like Google Maps and all that kind of stuff. Cloud, everybody's heard of cloud. This is similar to Amazon Web Services. So I'll show you my cloud, AWS cloud sign in. All right, so this is, uh, AWS cloud, and it's got all kinds of services, virtual servers, managed databases, uh, all kinds of, uh, container systems, all types of tools, databases. Look at all this stuff. There's so much stuff. Machine learning, media services, quantum technologies, robotics, satellite. I could do anything on this thing, and they'll charge you for it, that's for sure. So Google has one similarly, and Microsoft has one called, uh, Azure. So everybody, not everybody, but these big companies have these cloud technologies that are very exciting. So let's look at new divided by old, Q1 22 divided by Q1 21 minus 1. Wow, Google Cloud grew 44% last quarter. That's really fast. That's faster than the other business, which only grew 20%, and it's a smaller business, so it can kind of grow maybe a little more easily. I don't know. But let's leave that at that. See if you guys have any questions or whatever. And I'm going to also look at Google has this laid out nicely, and you can see each company lays out a bit differently. The SEC website also lays it out. So, so all right, well, here's Q4. At what point do you recommend moving out? Moving out of what? You don't want to automate this process. There's a lot. Um, yeah, it just doesn't make sense to automate it, and it's hard to explain why, but explain some other time. Um, so they even break down revenue even more than this. Oops. And so what we're gonna do is do what they do. They've got search. You can see the search is half of Google services, isn't that interesting? Then they've got YouTube, $31 billion. $32 billion from search, $6 billion from YouTube, $7 billion, uh, Google Network, and those three make up, well, they got Google Other. It could be Android, could be, I don't know, lots of things. Oh, I got the wrong column too. This was all last year's. This year, let's see. Google start again. Search $43 billion, YouTube $8 billion, uh, Network $9 billion, and Other $8 billion. So the total there was, oops, and I'm, I'm messing this up big time. Let me go back. Putting in the wrong column. All right, start from scratch. We're looking at Q4 21 first of all. So for Q4 21, Google Search, all right, got that. Now YouTube, and you can see YouTube is, uh, a big business to be sure, but it's not nearly as big as search as you can imagine. Search is much bigger. All right, and now Google Network. So, all right, so this is a better breakdown than we did last quarter of what their actual revenue is. All right, there's cloud. I'm gonna add this to cloud services to cloud. So how we do it? We got that, right? Maybe not. Yep, no, that's right. I'm gonna add the other two lines, hedging and other bets. Other bets has been a big disappointment for Google, I think. So [Music] um, is there music? I don't think there's music playing. Maybe you guys can hear it. I can't. Must be my new Gunther album. All right, let's see here. Yeah, Microsoft, uh, would have been a good short, it turns out, right? We're up 11% on our Google, so make back some of the mistake we made with Microsoft. All right, there's also a number of employees and traffic acquisition costs here, which are both pretty cool things to track. Anyway, let's do what we did before. Let's just slot these in real quick. Okay, now let's do last year. Somebody outside is playing some music and sounds like some kind of loud rap music. I don't appreciate it. I'm trying to work. I may have to go downstairs and explain that they must cease and desist immediately before action is taken. Will not be permissible, sir, for you to continue in this reckless manner. Total disregard for my. I might have to make a call. Have somebody do my dirty work for me. I'm too busy. But I got really mad. I would go down there myself immediately. Immediately. All right, let's see. I've not had to raise my voice in years. I'd like to keep it that way. Oops, got my numbers backwards again because Google's way of doing this is a little backwards. At least it's not reverse Polish notation or something. All right, so we got, uh, we take these two quarters. Oh, we can do this. Multiply by four again. 67-ish, $68 billion. But that's growing quickly. So you're paying 19 times earnings for, I don't know, 20 earnings growth. So maybe, wow, that's a really cheap stock. I don't think Google's earnings will go down anytime soon, right? That seemed like a pretty diverse, as well. I mean, I guess it's not that diverse if you look at search. Search is still, let's see, as a percentage of revenue, search is what percentage of the business? So search, that's just not, that's not just by the way, Google search on the front page. I don't think that's Google search across a lot of different properties. I think like maps and things like that. Still search. Maps isn't probably that big. But regardless, it's still half the business. So something bad happens to Google search, it's certainly possible. I mean, it doesn't seem likely, but like a pretty good risk, or better than Microsoft, at the very least. Microsoft is just has different properties. It's got less risk, maybe than Google for the same reason. Let's do the annual numbers as well. Let's do like this, and we're going to do forecasts at some point soon too, long-term forecasts. So for the year, Google had revenue of $182 billion for 2020, and $256 billion, $287 billion for 2021. How crazy is that? Enormous business, huh? Just never used to seeing numbers like that in healthcare. There's no drug company that sells that much. Okay, yeah, so for the year 2021 versus 2020, they grew 40% revenue growth, like they're a young company or something. That's crazy. Really wild. All right, let's go back one more quarter. I want to view this later video about computer science stuff. All right, search, search, search. Well, they didn't, oh, no, they did. Okay, let's see. Seven, nine, twenty six, seven, two, oh, five, seven, nine, nine, nine, six, seven, five, four, ninety, one, eighty-two, sixty-two. All right, shhh. I have some atopic dermatitis or something, maybe scalp psoriasis. I have a lot of atopic disease in general. To have some like sinusitis, some itching. This basically comes from having an overactive immune system. There's a new drug called Dupixen, which I, I'd like to take. I even have a little asthma sometimes. So it's all atopic disease, allergic response. You biopharma people out there know what I'm talking about. Thing about me is you can't really troll me. I'm the greatest troll of all time. So you try to troll me, that's when the old me comes out. And the whole knee comes out. You, you don't want that. You don't want to be on the receiving end of my trolls. You can see one time some kid tried to troll me, called his high school principal, made him apologize, called his mother, went on a date with her. Don't troll me. I don't want to go back to that life. I also don't want to go back to prison. All right, so there's some revenue growth deceleration for Google. A lot of people think these tech companies are decelerating rapidly because of pandemic. Pandemic sort of slowing down. Well, to me, I think that's nonsense. I mean, I think that it's hard to lap, you have these comparable issues, right? Where it's, it's hard to sort of keep growing after growth. So this idea that maybe demand was pulled in, uh, from future quarters was pulled into current quarters, and that we're going to see that slow down to a point of, we're going to see negative. I really don't think so. Would make a lot of sense to me. But never say never. Got to be careful. Okay, everything here matches up, and you can see Google's ad machine goes burr. The money, money machine goes burr, right? You know you guys know what I'm talking about. [Music] I need more like the burr sound. [Music] That's some weird anime stuff. All right, anyway, you can see the revenue, $38 billion, $46, $57, $55, $62, $65, $75, $68. Okay, cool. All right, so that's, uh, more or less a wrap for a brief Google income statement. Not too heavy duty here, just sort of a stub to get started on. Um, as I build these models up, they'll be more, more and more sophisticated. Again, I'll share this on GitHub real quick so you all can download it. Who do you know does stuff like this? Huh? Who do you know? Oh yeah, hit the subscribe button. That's what, uh, Google wants you to do. Hit subscribe. That's good for me somehow, I think.