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Monday, July 23, 2007

Google, is its Future Up or Down?

To take a break from the tragedy that is SunRocket, Google(GOOG) has seen quite a bit of attention lately. Wall Street is in a disarray with the recent posting of earnings. Google missed estimates by one penny per share, the penalty for doing so? Stock price plummets $40 in two trading days.

Personally, I do not see what the big deal is. Many financial analysts are confused whether to say buy / hold / or sell, but I think its quite simple really. Buy, buy, and buy some more.

Since Google has become public, they have acquired 28 companies, that is an average of .8 companies per month. With those companies comes brilliant products and services, not to mention many many patents. So why is Google on a acquisition binge? Quite simple really, they want to revolutionize the way we find information and they want to do it while maintaining strong growth.

Now we all know, that a company that reaches $10 billion dollars in annual revenue in just 10 years of operation needs to keep feeding. If they slow down spending money, slowing down the intake of intellectual property (patents), then they give their competitors (Microsoft, Yahoo and AOL to mention a few) a chance to catch up and steal back some market share. If Google continues this path of obesity, they may very well just drive some of that competition to the ground.

If there is only one thing that history has ever taught us, is that mighty empires never last forever. And in respect to Microsoft, you are witnessing its demise.

Microsoft is standing tall, Google just keeps pushing and pushing, all the while Apple is hiding behind Microsoft on all fours waiting for Google's last push. And collapse, Microsoft is no more.

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