Google CFO Speaks, Stock Slides

Google’s CEO hinted at some investor conference that growth from their search business was slowing and that they’d need to find new ways to generate revenue. The stock dropped nearly 12% before rebounding a bit today.
I think there are two points worth making here. First, it’s clear that there’s a lot of sensitivity and concern around about how much fuel is left in the search ads business. The sky is clearly not the limit. The second point is more critical: Google has not sat around and twiddled its thumbs while search revenue came in. They’ve been very active (if not aggresive) at putting forth new initiatives in all sorts of areas. Some are very impressive. Some are not. But almost all of them don’t bring a dime into the company.
If I owned Google stock (which I don’t) I’d send an email to investor relations asking when they tie all of this stuff to an actual business plan. I’ve said it before, all these little efforts are amount to Google’s very own bubble. The more relevant question I’d have in response to the CFO’s comments is: what about the 30 or so initiatives you’ve put forth so far?

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