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November 22, 2006
Filed Under (Google) by Matt / Derick on 11-22-2006
Google appears to many in the world to be unstoppable… both technology and financially. With stock prices pushing past the $500 per share mark, Google appears to be a rocket ride to the top of the world's most valuable company list. Only two companies are currently worth more money that the search company. But, as John Shinal writes for MarketWatch, this isn't entirely unheard of. Cisco Systems, one of the two companies worth more than Google, experienced a similar explosion in stock value several years ago. And while it continues to stay in the ranks of the top three most value companies, Cisco's surging stock prices eventually capped. And then fell. Shinal's article not only highlights the rise and fall of Cisco, but also shines light on several similarities between the two companies. When Cisco was the Wall Street darling, some people said it was unstoppable. Some said it was set to break records and change the stock market landscape forever. But it didn't. Now, some people are saying the same thing about Google. Is it possible that Google will continue to grow increase its value for years to come? It is quite possible. But, as Shinal points out, that can usually only last so long. As long as Google continues to innovate and hold its position as a leader, it should continue to grow. It's all about the future on Wall Street. I agree with Shinal: investors don't care what you've already done. They're only interested in what you're going to do. A simple glance through the Google category here at the Internet Marketing Monitor shows that Google is innovating. Every day. Its value as a company is directly linked to that innovation. As future prospects grow, so too do stock prices. So what happens when Google runs out of steam? What happens when a now unheard of start-up begins to trump Google? Pretend you're Yahoo! and it's the late 90's. Yahoo was in a similar position to Google, market share wise. Google management knows this. They're going to try their hardest to keep ahead of the curve and keep innovating. This means as internet marketers, we're going to have to keep on our toes. We're going to have to innovate along with Google. The things we're doing today won't be the things the we're doing next year. What works today won't work tomorrow. You may not care much about Google's stock price. But as a website owner or marketer/advertiser, you should definitely care about what the leaders in search and internet technology are doing. And Google's going to keep tap dancing.
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