Just some musings, based on no facts but…. Is Goggle heading for trouble?  Despite all their product development efforts & a significant amount of hype, they still only have one revenue stream, advertising.

On top of that the word is that they are loosing staff in large numbers due to growth pains.

Finally, look at their strategic stance or lack there of. Who are they strategically aligned with? Perhaps more importantly who have they rankled? MS, Yahoo, Apple, Broadcasters, news companies….Wouldn’t a more prudent stance be to take on just one of these giants (by partnering with their enemy) at a time??

When the market realises that there are no new revenue streams, coupled with a large list of enemies what do you think that will de to the sharp rice? And without that kind if capital, how will they get out this hole? There are parallels to the dotcom boom/ bust companies here (IMHO).

Thoughts?

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written by Jim Donovan, April 02, 2008

I think you're over-reaching. Yes they are exhibiting classic symptoms sufered by hugely successful fast growth businesses: super-generous staff benefits still in place, vast expenditures and huge staff numbers on projects of dubious merit, over-recruiting stars who are now getting bored by the mundane work they do. But that doesn't equate to being a one trick pony. Yes ads bring in the dough, but search, office-type apps, in-house appliances, blogger, all seem to have solid acceptance. I expect to see a hunkering down to a simpler less extravangant and more focused model.

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written by Paul, April 03, 2008

Hi Jim, Nice to have you on the site!

I appreciate that this was a bit sensationalist. I agree that they do seem to be going thru growing pains. I also agree that they have a great many other services which have the POTENTIAL to create decent revenue streams.
My issue is twofold. They've had some of these potential reveue streams for quite a while now (at least 2 years) yet they only make up 1% of their revenue (http://investor.google.com/fin_data.html).
Secondly, by creating these revenue streams they've taken on every bully boy in the school yard but seemingly not aligned themselves with another big player to give them some support.
This post was a musing, but it would seem to highlight some issues, and these might be important when the share market either gets the fact that they are a one trick pony or doomsdayers get enough momentum to tank the share price

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