[ur-whale]

> I think this is a systemic problem of an industry where gross margin is 80%

explain how GOOG's margin is 80%

what methodology do you use to derive that number?

just curious.

[Eisenstein]

Its 36% for Q1 2026.

* https://i.imgur.com/3gDVMCk.png

[superjan]

The way I understood the 80% is that is the margin on the actual product. 36% is what remains after the “investments” in moonshot projects nobody asked for.

[giancarlostoro]

Wasn't it always somewhere between 20 to 30% (especially more recently in the 30s) but the real difference is, they're in the billions of dollars, your small business might be in the millions, it's quite a drastic difference altogether.