Thursday, November 17, 2005

Is Google Flying Too High?



Business Week Tech Page
"A year and a half ago, plenty of investors were skeptical that the Google IPO was a good bet. On Nov. 17, Google shares closed above $400 for the first time -- at $403.35, to be exact. It's a stunning climb for a company that was priced at $85 ahead of its IPO on August 19, 2004. The current market cap, $112.6 billion, is nearly five times its initial value of $23.1 billion."




It amazes me that a company that sells advertising on web pages can be worth 112.6 billion dollars. This is an excellent article if you're at all interested in how Google has risen above the competition, perched itself on a limb, and may soon enough be knocked off. Microsoft and Yahoo will not stand by idly and watch Google gain so much ground on their territory. With speculated plans to offer an online operating system in the near future, Google is tempting the gods. MS is a beast that can make your life fall short of its expected due date, if it so pleases. Yahoo, being the current #1 visited web site on the internet, will not stand for it either. It seems odd that Yahoo is number one. Does anyone Yahoo anymore? I never did, but I suppose someone must be. It must be with all of their sites included, which includes Flickr, etc.

So, Google, with all that money, why not share the wealth a bit? Instead of paying us lowly people $0.01 per thousand page views, why not double it? Heck, you could even triple it! Your investors have faith in you, the advertisers have faith in you, and I don't think raising your payout rates is going to break the bank.

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