Tuesday, April 19, 2011

Investors putting their back to Google

Yes you heard it right, the search giant Google is falling short of investors. The reasons are quite straight forward, Google's stock is exactly where it was in September 2007, and moreover it has fallen 9% since Eric Schmidt announced in January that he would be stepping down as CEO.

As per the investors, for every reason to believe in Google, there seems to be a counterbalancing reason for not believing in Google and this is the major problem for the company.

The company is growing rapidly, but antitrust battles are a threat to growth. Hiring increases could help create the next billion-dollar business, but the weight on margins scares some investors. New management should make the company more efficient, but near-term profits could suffer. And well-received product enhancements aren't enough to reduce some investors' worries about Facebook's threat to Google's business.

Here are the closer look at the major points which Google must look after :
  • Slowing growth
  • Expense growth with management change
  • Facebook competition
  • Transparency
But we all know Google and its history which really counts and over all this Google is an inspiration for each and every IT professional through out the world. Though figures are not in favor but undoubtedly there is something lying beneath all these.

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