Author Topic: Is Google Over??? (Read 3314 times)

Kudrat Kaur · « **on:** August 17, 2010, 09:33:21 PM »

I came across one article so thought of sharing with u guys.. this has very controversial issues..Lets have a look..

1. That was fine when the search business was expanding at 30% or 40% a year, and Google's revenue was growing at twice that. Long-term projections for growth in the search business are more in the 15% to 17% range. Yet analysts estimate that 91% of Google's revenue still comes from the AdWords and AdSense business model that Google built around Page and Brin's breakthrough PageRank algorithm. Even more telling, an estimated 99% of its profit does too. This year's projected earnings growth of 18% is a third of what Google averaged over the past five years. A lot of companies would kill for that growth, but for technology companies, and Google in particular, those numbers don't impress.

2.Some investors also worry about Google's ability to keep pace with consumers' evolving use of the web. Say you want to buy running shoes to train for a marathon. Five years ago you would have simply Googled it, looked at the list of results, weighed your options, and made the purchase, perhaps by clicking on one of the sponsored links that accompanied your search. Today you might still do that, but increasingly you might pose the question "What running shoes should I buy?" to your friends on Facebook, or maybe write "Who knows about training for marathons?" on Twitter. By the time shopping service Groupon sends you (and 25 of your friends) an offer for the perfect shoes and registration for a race, you'll probably just pounce on it.

"Google is not the hot company anymore," says Marc Benioff, CEO of Salesforce.com (CRM). "Their stock has been mostly flat for five or six years now. How can you claim to be a leader with equity performance like that? That's starting to look like Microsoft or Yahoo (YHOO). They have to get into some other place, and quickly."

3.In this new phase of the web, one of the largest threats to Google and its core search business is the expanding Facebook footprint around the world. Not only because social networks (and those used for work like LinkedIn fall into that same category) offer a substitute for search for consumers, but also because they offer a substitute for advertisers as well. In display advertising, for example, Facebook has a 16% share of the roughly $9 billion market, according to comScore (Google sites have 2.4% of the market), and advertisers say they're looking for more ways to plug into Facebook.

What U guys think abt it??

Though there r rumour abt "Google Me"...That cud give more advantege over competition.. I guess Google has lots of assets they dont need to get scared but Internet is changing so fast so one social networking site cud be beneficial to Google otherwise Twitter and Facebook can take over large share of Google..
Even In china, Google has tough competition with Baidu.com which has 29% of market Share..

Author Topic: Is Google Over??? (Read 3314 times)

Kudrat Kaur

Is Google Over???

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