We often ridicule tech companies for having inflated valuations. I don't disagree with this in general.
In your specific comparison, which company do you genuinely think will grow more over the next N years? Google has shown the ability to dominate multiple markets time after time.
I can't see Exxon as any more than an oil company. There's certainly nothing stopping them (any more than any other business) from innovating.
The only market that Google has ever dominated profitably is search engine advertising. Despite, Glass, self driving cars, Android (free), Feedburner (dominated and shuttered) Gmail, Maps, etc... 96%[1] of their revenue is from selling ads.
I love a lot of Google products, but the only one they make any money on, is one I despise. It pays for everything else.
I was thinking about it last time. And it's sad that it's 2014 and most tech companies that get tons of press and admiration make money with advertisement, something we all hate.
Doubtless there are some (perhaps even many, in certain circles) who would rather pay directly for services, but you're sorely mistaken if you think that it's anywhere near-universal (even on HN/in tech) that people hate ads more than they hate paying. What you actually mean is "something we all hate, given that we feel entitled to getting services completely for free".
In your specific comparison, which company do you genuinely think will grow more over the next N years? Google has shown the ability to dominate multiple markets time after time.
I can't see Exxon as any more than an oil company. There's certainly nothing stopping them (any more than any other business) from innovating.