Google's Day of Reckoning
Sure hope Google losing its status as the world's leading brand is not an omen for its fourth-quarter results, which come out tomorrow afternoon. If Google falls short of the 77¢ a share expected by analysts or offers a forecast that falls short of expectations, the stock could be creamed. eBay learned this lesson the hard way earlier this month when it missed the earnings number by 1¢ despite posting record revenue, while providing a modest outlook for 2005.
The expectations for Google are so high, it will be nearly impossible for it - sooner or later - to disappoint investors. This
should not suggest Google's running out of momentum more than the reality that somewhere along the line there will be a hiccup in growth. I still maintain Google needs to find another growth engine, be it organic or through a large acquisition. The company has lots of financial muscle so it may be time to exercise it.
There is an interesting article by Saul Hansell in today's New York Times looking at Yahoo is closing the search in the U.S. while outpacing Google in the introduction of new services. If you think about it, Google is a one-trick pony while Yahoo has been charging ahead on a nubmer of fronst - including paid-services.
