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breakingnews · 04-22-2005, 04:00 PM

Larry Schmidt, Google's CEO, has said what Wall Street investors fear most: The company will be unconcerned with day-to-day numbers - withholding financial projections, paying little attention to per-share earnings - and instead will focus on long-term growth and, most of all, Google's master plan.

This might work for now - the entire world is still enamoured with the concept of Google and how fucking amazing the company is - but in the long run, and particularly after the first series of underperforming numbers, there will be lots of pressure to change this attitude toward shareholders.

That's fine for the stocks of the world's biggest companes, which do not trade as heavily as, say, technology stocks. Investors are vested for the long-run and know that firms like GE, Wal-Mart, etc., will continue churning out money by the billions. You might say the stock has some sort of physical value, as opposed to just brand value.

Which is what Google is riding on. Its intellectual property is priceless, but how much faith can we really put in technology - especially after the dot-com bust? WE know the value of computing and the Internet, but are we ready to consider a math equation the foundation of a blue-chip stock? Might analysts and investors get greedy and turn a shoulder to Google in five, 10 years, perhaps when the company is hitting stagnant territory, and demand that the company start watching its bottom line?

04-22-2005, 04:00 PM	#4
breakingnews Q_Q Join Date: Oct 2003 Location: somewhere in between Posts: 995	Larry Schmidt, Google's CEO, has said what Wall Street investors fear most: The company will be unconcerned with day-to-day numbers - withholding financial projections, paying little attention to per-share earnings - and instead will focus on long-term growth and, most of all, Google's master plan. This might work for now - the entire world is still enamoured with the concept of Google and how fucking amazing the company is - but in the long run, and particularly after the first series of underperforming numbers, there will be lots of pressure to change this attitude toward shareholders. That's fine for the stocks of the world's biggest companes, which do not trade as heavily as, say, technology stocks. Investors are vested for the long-run and know that firms like GE, Wal-Mart, etc., will continue churning out money by the billions. You might say the stock has some sort of physical value, as opposed to just brand value. Which is what Google is riding on. Its intellectual property is priceless, but how much faith can we really put in technology - especially after the dot-com bust? WE know the value of computing and the Internet, but are we ready to consider a math equation the foundation of a blue-chip stock? Might analysts and investors get greedy and turn a shoulder to Google in five, 10 years, perhaps when the company is hitting stagnant territory, and demand that the company start watching its bottom line? __________________ Gone crazy, be back never.