A CNN Money story surveys analysts
who remain uninvested in Google stock, and who talk frankly about the downise risks of the investment. Their remarks
touch on the sustainability of Google's business model. The consensus among these holdouts is that while Google is
taking advantage of extraordinarily favorable conditions for a search advertising company, the long-term future
requires some kind of diversification. In other words, Google is a one-trick company operating in an environment in
which that one trick is booming. Also, they say, Google's business is misunderstood by many investors, who think Google
is a tech company rather than a media company.
It seems to me that Google's diversification takes the form of establishing new realms for search advertising. Froogle
and Gmail are both breakthroughs in this regard. Taken to the extreme, Google would present contextual ads at every
step of the user's entire online experience. It's still just one trick, but a gigantic footprint can help guard a
company against cyclical downturns.
1. For a billion dollar company that is suppose to make money, I don't understand why googles froogle is still free, it has being free for probaly a year now, they are really missing out on making alot of money from froogle, just look at how successful pricegrabber and shopping.com are becoming. I'm not sure if they are holding of on froogle because they want to build up more merchants or something or they are worried about fraud clicks or something. Its has been free for so long that they problay have got more merchants using it than all the top shopping site out there, so my thinking is that they might not been confident enough in there click track system or something.
I just wonder why everything thats so long, they are missing out on alot. I just don't know why they hold off on projects they can make them alot of money on straight away and concentrate on ones that don't make much money, but build more traffic like google maps, how much traffic do they need to build up? before they concentrate on money thing, they have all the traffic already.
Regards Bob.
Posted at 4:42AM on Dec 19th 2005 by Bob