Google stocks rates have fallen. Minus 20% in January. It happened after closing market trade once the last quarter performance of the company was disclosed. The fall was caused by the analysts’ assessment of the expected stock profit of 1,76 USD, and the announced constituted 1,54. besides, the company announced about growth slowdown expected. Further trade cut the fall to 7,14% but the result of the trade probably was the first signal for the company investors.
400 USD is the current rate after the stabilization, was achieved by Google as early as in November 2008. In January, when it was on top, Google rates achieved 475 USD and was forecasted to be risen to 600 USD. Now the investors are concerned if there is going to be any growth of the company or it will see a deceleration.
So, currently most analysts consider Google’s only one strong side – sales of the text advertisement in the search results. Since 2001 incomes from this activity have been gradually increasing. Other Google projects are numerous, but no one seems to provide the company with any considerable income. All of them are subsidized by the advertisement business section. All of the Google projects are getting approval, but later on they are left and paid no attention to. In the meanwhile the company rivals are breathing down Google’s neck.
The company should be much more concerned about the money, and not only about the ones invested in the projects that are going to be left soon. For example, the Google event on the Davos forum had numerous possibilities for cutting costs. The company could at last stop treating their guests with vintage vines. In order to catch the dive again the Google needs much more effort put to find new solutions and to manage a new breakthrough. So far they do not really seem to succeed in this. If they do not, the stock holders, surely will remind them of the vintage vines.
