1. Leadership: This company is running like a chicken with its head cut off. CEO Eric Schmidt is flying solo without the help of founders Larry Page and Sergey Brin who are actually selling shares themselves. Not exactly a ringing endorsement from the innovators.
2. Profitable Innovation: Schmidt knows they are vulnerable which explains why we hear about yet another Google experiment on a weekly basis. Last week it was Google broadband. This week it’s Google TV. It’s all a big joke. Even Android is a joke. The recent market share gains from Android are misleading because it suggests Google is making money when all they’ve really done is give it away for free. Investors are ready to see profits beyond desktop advertising.
3. Mobile Search Competition
4. Brand Trust
5. China
Schwarz writes, “Google is scrambling to come up with a family of products similar to Apple but it simply is not in their company DNA. They do search, that’s it. Their software is profitless and their hardware is copycat. I’m not saying that Google is going to disappear but I am saying that their days of high growth are over and that means the stock is doomed over the next 24 months. Investors might make more on Google puts than on Apple calls.”
Much more in the full article here.
MacDailyNews Note: Currently, Google (GOOG) is trading at $540.29, down $8.71, or -1.59%, with a market value of $171.80 billion. Apple (AAPL) is trading up $1.00. or +0.44%, with a market value of $207.98 billion ($36.18 billion more than Google).
[Thanks to MacDailyNews Readers “GetMeOnTop,” “James G.,” and “iWill” for the heads up.]
Google’s products are crap, their technical support and customer support is non-existent, and they have no focus as a company.
I like Android. Google don’t charge for it because they don’t want to earn money off the software. They want to earn money from advertising.
Google also know that Android may not be the “it” thing, but it will spread. More and more phones are being released with Android. Android would have been a flop if Google charged for it.
I like Google as a company. It’s about more than simply making money off software and hardware, which is Apple’s & Microsoft’s approach to business.
See that 1000 pound gorilla in the room Google? He’s looking at you, and not in that come hither way.
you’re actually Ballmer’s 14 year old kid, right?
PlayNIce, what is it that motivates you? Windows……please!!!??
May google become the shortsellers next favorite stock. I’ve said it before that at some point enough people will understand apple and the stock will be less susceptible to manipultion. That time is now. Or we’re just being set up for another round of fud about production delays, low sales, iPad lacks this and this bla bla bla. i don’t really care, i think the stock is staying above 200 permanently with a great future, so any temporary dip is a good buying op.
ET wrote: “Is it just me, or have Google search results started to get more diluted with junk at the top.”
No its not just you.. All the stuff at the top is to do with buying things, not a good review or analysis, just shops.
And Google ought to read this and other threads – many people agree it has strayed to far, is doing too much, is not serving people well, and also, is wrong, deeply wrong, to have crossed swords with Apple and Steve Jobs.
I say fire Schmidt and get back on track before all the bridges are burned…
” . . . Google’s stock price has soared over the last few years.”
GOOG:
629.51 = 52 week high
542.00 = Current (down 13+%)
200.00 = 5 years ago (Up by a rough factor of 3.14)
AAPL:
$229.77 = Current AND all-time high!
40.00 = 5 Years ago (Up by a rough factor of 5.74)
” . . . and Microsoft has by FAR the biggest market capitalization of any of the companies mentioned.”
“Mentioned” where?
$261.14 Billion = MSFT
$208.38 Billion = AAPL
$172.64 Billion = GOOG
Apple is smaller than Microsoft (for the time being), but larger than Google. And the trend here is very, very clear. Microsoft’s stock has been stagnant for the past 10 years; all investors know that. And Google is scaring the pants off the market right now for ALL of the above reasons.
Invest wisely, PlayNice. And be careful of companies whose best moments are in the past.
Google’s Android strategy is flawed from a money making point of view .
Google spends millions on R&D;and support but we are now seeing Android phones being loaded with Bing, Yahoo and the carrier or OEMs own apps like Maps, Music etc.
Take the Moto Backflip for example:
Android Moto backflip comes with Yahoo and
Engadget:
“It’s (Backflip) filled to the brim with pre-loaded AT&T;stuff: AllSport GPS, AT&T;Maps, AT&T;Music (which takes the place of the standard Music app), AT&T;Navigator, AT&T;Wi-Fi Hotspots, Mobile Banking, MobiTV, MusicID, Where, and YPmobile.”
——
How is Google going to make money like that?
No money from search, lots of money gone from apps.
…”Microsoft dominates the gaming world with the Xbox 360″
You picked THE ONE product from Microsoft that continues to lose money as an example where MS dominates. If MS dropped Xbox tomorrow, it would end up reflecting positively on their bottom line. The only reason it DOES dominate (as you say) is because MS is heavily subsidising it. If it had been allowed to compete with a reasonable price (one that would end up making profits for MS, or just breaking even), Xbox would be in the same history pile as the Game Cube.
As for Google’s (or MS’s) stock price, well, if you compare it to PALM, it may look better (at least during last year). However, we’re comparing with AAPL, and there, it doesn’t quite hold up (never mind MSFT, which has been moving sideways for a decade).
Eric Schmidt needs to stay with Google.
Funny how everyone here wants Google to “focus” on their core strengths and give up on the rest, while begging for Apple to make a… search engine !
What is this “Apple’s Quattro” that the author refers to? Is it a figure of speech?
I’m not a Google lover but I take issue with a couple of the author’s comments:
“The recent market share gains from Android are misleading because it suggests Google is making money when all they’ve really done is give it away for free.”
Everyone knows Android is free. When I read about Android’s market share gains, I’m smart enough to realize that the revenue comes not from the OS, rather from all the Google-controlled advertising that appears on those Android handsets.
“Investors are ready to see profits beyond desktop advertising.”
Beyond desktop advertising?! What the heck is AdMob?! I call BS. Today’s mobile advertising is yesterday’s desktop advertising, and Google’s purchase of AdMob guaranteed themselves a top tier revenue generating position in the mobile advertising space for years to come. You have to be really stupid to invest in Google and not understand that the company’s entire kingdom relies on advertising revenue. So to seriously expect more from other pursuits like, say, cloud computing or Nexus One sales is in my opinion ridiculous.
What is this “Apple’s Quattro”? Google it!
When either Google or Apple hit $400 per share Eric T. Mole will be shown the door.
I bet Apple will unleash it’s own Internet search engine. I mean if Micro$oft has it’s own, Apple would surely blow everyone out of the water by creating one.
While Android is a free OS from Google, they are at risk from more handset makers and carriers replacing Google search and their other services from competing companies like Yahoo, Microsoft and perhaps some new entrant.
If I were a Motorola or Samsung, I would definitely replace every Google service from the Android OS as payback for the Nexus One backstabbing.
I don’t think this is the most balanced article I’ve read about Google’s prospects, but there is some truth in it. Google has made missteps, and their markets are vulnerable.
Just like Amazon and eBay appeared invulnerable a few years ago, Google probably won’t appear quite the behemoth.
Schmidt’s antagonism of Apple could well be Google’s most expensive mistake.
It’s still far too early to write them off though – there’s still a hell of a lot of energy and good ideas left in Google – unlike the moribund Microsoft whose financial strength is based entirely on its ancient OS and Office software.
@PlayNice: “And for all the bashing I hear over Google and China, look how much of a complete DUD the iphone has been in China (where, ironically, it’s manufactured – like everything else). Pathetic that it can’t gain traction in the worlds biggest market.”
Just so you don’t remain totally uninformed:
http://iphonasia.com/?p=9202
http://iphonasia.com/?p=7640
http://www.neonpunch.com/iphonasia-part-1/
http://www.neonpunch.com/iphonasia-part-2/
Total iPhones in China are estimated at 2 million, including gray market units. Apple is planning to open over 25 Apple Stores in the country in the short term.
Hardly a “DUD,” PlayNice…
I guess certain people are whining because they’re iphone is no longer the latest gadget out there. Calm down dude. You really sound like you are drunk and don’t know what the heck you are talking about. I will see you in 10 years and tell you how my investments in google went.
Btw, Dell is also moving from China. Even Barrack Obama was involved on the decision to move out of China. Do you not know that Google has an enormous support? Did you see how Google stocks went up today? Right after they made the decision to leave China? That just tells you that Google isn’t going anywhere.
Listen guys im not gonna call u names but google makes money on search.That fact cant be disputed,but all there products steer that many more people in there direction of search they win.Its simple math the more people searching the more money they make.Market caps mean nothing its just an analyst blowing hot air.Ask to see how man puts the writer has made to make money on the play.If he isnt in the game he is no better than an armchair quarterback.