Google is the internet company of the 21st century. Sure, they have the idealistic philosophy, the cooler than Microsoft campus, and 2 superboy founders who are the idols of braniacs everywhere. But behind it all, Google is a real powerhouse - they've got the brains, the brawn (errr I mean the cash), and they may just end up owning the internet before we know it! Google has a shadow though, the one that lives in the chaos of Wallstreet and is just about as famous and loved as the company itself. Yes, it's GOOG - no, not Google. GOOG. The stock that traders and brokerages alike get into a frenzy about. It's the darling of Wallstreet, the one that generates the Buzz, Google's shadow cast on the world of finance. What a shadow it is! Coming in at a hefty weight of around $404 (as of now) there are more than a few people who are finally coming around and wondering if GOOG is just a bit overweight. For some commentary describing why, I point readers to these 2 excellent articles: http://xooglers.blogspot.com/2006/03/google-vs-goog.html http://www.thomasmaddengroup.com/resources/articles/0001-1.php They outline the arguments far better than I could, and the first one is written by a former Googler (ie: manager) to boot.
What does the future hold?
Sure, Google is developing a wide range of cool internet toys. Most recently it's Google Calendar, which is a really nifty online organizer. It sports the typical simple, friendly interface that hides a great deal of complexity: something that Google does well with almost all of it's web apps. What they've got is great. A suite of services like Gmail, Google Maps, Personalized Desktop, Calendar, even stepping on more toes with Google Finance - stuff that Yahoo and Microsoft are reeling to match up with. They're integrated, intuitive, useful, and free. Ahhh, Free. But charging users for these services won't get them anywhere. So if they aren't gonna make direct revenue, how is Google going to make money? How are they gonna "monetize" this stuff, as analysts like to call it? What they have got from this is increasingly more targeted information about their users - what they use the web for, how they use it.. Google probably knows far more about the web community as a whole than any other entity in the world. All this can of course, be leveraged to ... you guessed it, create even better Targeted Ads. How long can Google maintain growth and compete against the likes of Microsoft (who, might I add - tend to catch up real quick) relying mainly on Ad revenue? Will Google be able to leverage their vast array of cutting edge web services to create another revenue source with huge growth potential? If so, sometime in the near future? That's what I'd like to know. Until the average GOOG shareholder starts getting a clue as to what direction this company is headed - there are far safer and investments out there. Feel free to add to my Blog! I'd love the discussion.