Google stock achieved some jaw-dropping numbers yesterday, up to $552 a share with profits 27 percent above this period last year. CEO Eric Schmidt crowed, “we believe the worst of the recession is behind us and now feel confident about investing heavily in our future.”
Today Chris Thompson brings us down to earth:
[F]or all its staggering growth, Google isn’t as big as it seems. On the Fortune 500 list, the company occupies a lowly number 117. Who’s bigger than Google, you might ask? Try some of these companies on for size: Staples (SPLS) (#109), Rite Aid (RAD) (#100), and Target (TGT) (#28). Don’t give up on the old economy just yet.
And here’s another reality check: plenty of tech firms are still head and shoulders above Google, at least in terms of revenue. Apple’s (AAPL) at #71, Intel’s (INTC) at #61, and big bad Microsoft (MSFT) is swaggering around at #35.
Sure, you say, but Google’s profit is still damn impressive. Yes, but here’s one last double-take. While Google’s 2008 profit was a solid $4.23 billion, Phillip Morris (PM) had it well and truly beat with $6.89 billion, even after all the tobacco taxes and settlements. Search is great, but addiction always pays the bills.