I think this analysis is an oversimplification. It is clear on the graphic that the revenue is growing at a fast pace, and the net income is also growing, but a slower pace.<p>What that means, is that Google is reinvesting a lot of its revenue in growing other lines of business and creating new lines of business, like Amazon does, not that it generates more money in revenue every year and their costs are also higher each year.<p>Think Android, and many other lines of business, and one in special which is almost ready to start making money, and it will probably dwarf the ad revenue: Self driving cars, specially now that they're creating an Uber competitor. I know, Tesla, BMW, Mercedes-Benz et al are also working on self-driving cars, but still...<p>Also, Google is always innovating with new products, some of them can be a success or a fail, or maybe they're ahead of their time (like Google Glass, I'd say)<p>Google is also making huge investments and research in deep learning (as is also doing Microsoft, and IBM)<p>Finally there's Google Ventures, which is always investing in promising companies, some of which can be the next billion dollar company.<p>So I'd say that the analysis is quite inaccurate.