Old v. new economy


in Geek stuff, Internet matters

Google, a company with 9,378 employees, now has a stockmarket capitalization of $155 billion: about $16.5 million a person. General Motors has about 326,999 employees and a stockmarket capitalization of about $19 billion: about $58,000 a person.

It is impossible for me to believe that Google has enough good ideas to justify such a huge amount of capital per employee. That said, they did earn $1.47 billion in 2005, compared to a loss of more than $10 billion at GM. Also, everybody has known for years that GM’s pension and health care obligations are going to bury the company, barring some massive default.

{ 2 comments… read them below or add one }

Anon @ Wadh November 25, 2006 at 4:25 pm

Google’s capital/labour ratio does sound excessive… until you remember that each and every employee personally requires 23 vintage 1971 Cray 1 supercomputers, and those things are not cheap to refurbish.

Milan November 25, 2006 at 4:29 pm

There’s no way that’s true. In reality, Google founders Larry Page and Sergey Brin need 3000 each. They also need a few dozen Samsung automated sentry machine guns to protect them all.

In an unrelated piece of news, have a look at how Google looked eight years ago.

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