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It's useful to keep these numbers in perspective in all the excitement. Browse http://en.wikipedia.org/wiki/List_of_companies_by_revenue and convince yourself that we're not quite living in a virtual world yet. The list is dominated by giant oil companies, with Exxon and Shell with $370 billion in annual revenues a piece (that's more than the GDP of all but around 25 nations). Manufacturing is also pretty well represented (Toyota: $240 billion in revenue in 2010). On the other hand, Apple now apparently outsells Boeing. That's pretty impressive.



Look at the margins when comparing Google vs. oil companies. That paints an entirely different picture.


The picture I was looking at is weight in the economy. We - I guess I am making some assumptions about the audience here - sometimes get so caught up in the kinds of things that are important to us, that we forget that this is not the whole world. I mean, Google+ vs. Facebook is fascinating, but this is probably not the most momentous conflict that history will record for the early 21st century.

And speaking of profit, apparently Exxon made $11 billion last quarter - more than the revenue number we're talking about here. Yeah, the margin is lower, but...


If the margin is lower, then you get more for investing money in Google.

Margins matter.





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