CyberTech Rambler

March 9, 2006

Market reality is going to hit Google

Filed under: Uncategorized — ctrambler @ 3:30 pm

The latest episode of Google share saga should be a wake-up call for Google that it cannot bark the market trend by being so-sceretive and ask everyone to adopt the “Trust me (Google)” policy.
The latest salvo is an article on Times suggesting that market participants are going to ask Google to provide earning guidance, like other companies do. While it is true that when Google was “the hottest thing”, he can do whatever he wants, when the excitment dies down, in this case, when Google is just viewed as “any company to invest in”, Google is expected to perform just like any other business, one of which is to make money for its investers.
This necessary goal was imposed on Google when it receives its first venture capital funding, exacebated when it goes for IPO (Initial Public Offerring). Google is feeling the heat of balancing making money with “Do no evil”. There are signs that, like other companies, Google has problems striking a balance between $$$ making and its “Do no evil” principle, the most glaring example that Google Search kowtow to Chinese Government for internet searches originating in China.
Google must find the balance for itself. I use Google Mail (GMail) and Google Search everyday. I am expecting the current high quality of these services to be degraded because Google has to make a bob. I am just another internet user who will switch providers when a better service is offerred. Google knows this and thus have to tread very carefully on this issue.


1 Comment »

  1. True. In fact, already a lot of the “sparkle” has gone out of Google’s eyes. Some of the new web 2.0 services are *very* sexy. Take blogging for example – Google bought blogger for a pile of money, then basically let it stagnate. And Google APIs tend to be less friendly than Yahoo’s in a variety of aspects..

    Comment by karipuf — March 9, 2006 @ 4:50 pm | Reply

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