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Alphabet's margins in fact are not down in any meaningful sense. They're basically unchanged for years.

2016 net income margin: 21.5%

2015 net income margin: 21.7%

2014 net income margin: 21.3%

2013 net income margin: 20.4%

2012 net income margin: 21.6%



Alphabets profit margin dropping is recent phenomenon. 2017q2 profit margin is just 13.55%. Advertisers paid 23% less per click.




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