I thought I’d never live to see this problem happen, but apparently Google is down. I’m not able to access it from any of my PCs, nor from any browser.
Now it’s up, but it was down for nearly 3 minutes, and that’s saying something for the most important website on this planet. Maybe I’m wrong, but Google, after all, is a website, and websites do go down.
Assuming this happened (Google went down for 3 minutes), how much did Google lose in revenue and net income?
Let’s see, Google’s total revenue in 2010 was $29,321,000,000, and its net income was $8,505,000, this means that:
- Google’s revenue per day is $80,331,506 (that’s $80 million) and net income per day is $23,301,369 (that’s $23 million)
- Google’s revenue per hour is $3,347,146 (yes, they make over $3 million an hour) and net income per hour is $970,890 (almost a million of net income per hour!).
- Google’s revenue per minute is $55,785 (each minute goes by, they make over $50,000) and net income per minute is $16,181 (what, only $16k per minute?)
- Google’s revenue per second is $929.75 (for every tick it’s another $1,000 of revenue for Google) and net income per second is $269 (at this point it’s not very impressive anymore!)
Now, if there were a downtime and if it were for three minutes, then the revenue that Google would have missed would be $167,355 and the net income missed would have been $48,543, a miniscule number that wouldn’t even appear as a blip when they “do the books” or “balance the sheets” at the end of each day.
However, if the problem becomes persistent, then people will no longer trust Google. I think the issue with Google is that expectations are too high, and if you go to Google and it is down, you would either blame it on your connection, your ISP, or your government. You would never ever think that Google is really down.
Probably no one will believe that Google was indeed down today, but then again, I might be wrong myself, and it might be my connection, my ISP, or the conservative government!
GOOG is trading just above the $500 level at the moment. Now if and when it falls below the $500 support (it almost did yesterday), expect the stock to become very, very bearish!