A year ago, while there was widespread carnage, Google reported a 45% rise in earnings. The stock hit $700 in October and amazed people as it had done several times during its post-IPO rise. My friend even wanted to buy one share just so he could show his confidence in the company's leadership.
Guess what, people? Today GOOG closed at $390. The invincible giant has fallen. It can't deliver endless growth, just as the dot-com bubble couldn't. And while some say that its business is solid and that the stock was simply overbought, I can't help but wonder if it also means Google is running out of steam. After all, people are always expecting Google to come out with The Next Big Thing. But eventually, it runs out of creative steam -- it can continue to do well what it is already doing, but has a hard time coming up with new services to throw out.
Talking to Google engineers, I also get the impression that Google has passed its peak. People are going there just so they can put it on their resume, and then move on to another company.
The golden days of Google are past. The stock price shows as much.
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