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With Google (GOOG) being the
number one search engine, as well as a powerhouse in mobile technology, and
nearly anything of an internet-related product, the decline in its stock
over the past few months has come as a surprise to some investors and financial
analysts. This has raised the question, is this just temporary or is this is a
sign of the dark times that lie ahead for this company?
Google announced a new device that it has been working on. Called "Project
Glass," the project is a pair of eyeglasses that has the capabilities of a
Smartphone. This project,
however, is still in the early stages of development and Google has unveiled it
only to gather some feedback from its target audience. As expected, this
futuristic device has received a lot of positive feedback
from consumers who can't wait to get this amazing technology in their hands- a
sign that when this project is finally released to the public, it may give
Google a huge boost. The development of Project Glass is slow, with Google
making sure to keep its press spread out and managed. Still, some wonder if
this is the only thing on Google's horizon to save the stock from stagnation.
In my opinion, this is wrongful thinking - as Google has been busy with
acquisitions and other developments.
Google has made another announcement, which is the acquisition of Meebo,
a social platform that connects thousands of users on the internet. This
program supports Face book (FB), Yahoo! (YHOO) Messenger,
and Google Talk to name a few. But how will this affect its performance in the
stock market? Well, it actually had an immediate effect on the stock. Just
after the announcement was made, its price shot up 1.3% (no small feat when
shares trade for as high as they do).
This is basically
a way for Google to counter Face book or to compete with the company by
continuing to develop Google Plus. But as you already know, Face book has
already gone public
last month and its stock has struggled, to say the least. But in Google's case,
this is not really its main concern. The decision or the motive behind buying
Meebo stems from the goal of snatching away the more than 1 billion Face book
users and lure them to use Google Plus instead. After all, Google has shown
that it is more apt in turning profits from advertising than Face book is, and
with the increase in users, the competition would really be muted. The question
for Face book remains how to make
money, the question for Google is how to grab users.
regard to the acquisition, the Google team also wants to acquire the pool of
talented developers that work for Meebo to actually help it create a powerful
social networking site in Google Plus, as clearly its plans so far have been
And when it comes to
building internet relationships, Meebo is not a company to be
underrated. It has reportedly earned more than $70 million since the company
came into existence in 2005. Furthermore, Meebo has a positive reputation
that can bring more credibility to Google Plus. And, with what's happening to
face book right now, it is expected that by the end of 2012, there will be more users
on Google than on Face book. The question, then, is how active these users are
on the sites, a point in which Face book still has a clear advantage.
acquisition tear hasn't stopped with Meebo, just as it didn't stop with its
taking over of Motorola earlier this year. Google recently bought
the Mobile Transmit Delivery (MTD) patent portfolio of Magnolia Broadband, a
move that continues along the trend of large tech companies buying up patents
to secure its own standing, as well as give it an offensive possibility in
future court cases. Already this year we've seen Google defend itself in court
as well as take other companies to court over patents (the Oracle (ORCL)case
being the biggest, in which Google emerged as the victor), and with the
ambiguous lines in technology these days, this trend could go on for years to
In its other arenas,
Google has managed to extend its search engine lead over competitor Yahoo! and
any other search engine websites out there (with the exception of Baidu.com
The search engine aspect has long since been the driving force behind Google
stock, yet it remains the calling card of the entire operation. Recent news has
broken with some uncomfortable news regarding Google's search engine and the
power it wields. Google has reported
that in just the last six months it has received over 1,000 requests to remove
content from governments. The news is unsettling not only because it challenges
the free speech of the World Wide Web, but also because Google has become the
singular go-to point for contention between large government institutions and
people like bloggers, video posters and analysts.
The censorship is
expected with Baidu's filtering of search results, but the large amount of
requests that Google handles is something of a shocker.
The worry here is twofold: the fear of either the large institutions turning on
Google for its refusal to censor, or the turning away of users who believe
Google is acting as a proxy for those trying to limit speech. Either way, this
is a perfect example of the problems that come with power. Google, being as
large as it is, will have to deal with issues like this moving on, and the
handling is particularly tricky.
Watch Google's developments closely.
At this point, the company is so large that some setbacks will obviously occur.
However, with projects on the horizon and acquisitions opening new doors
everyday, Google should continue to make its investors happy