When Will Google (NASDAQ:GOOG) Stock Finally Crash?

Photo of author

By Jacob Maslow

google on a macbook
Macbook Pro Retina And Iphone 5S With Google Home Page On The Screen

The interesting thing about Google (NASDAQ:GOOG) is that the market has consistenly given it a pass. While other companies in less sexy industries would have certainly gotten hammered for reporting the growth and earnings figures of Google, Google has simply gotten a pat on the head and gingerly told to try a little bit harder next time. Well, as you can probably tell, the stock market doesn’t have an infinite amount of patience. It’s only a matter of time before investors want to see solid profits. It’s only a matter of time until they start going back to the only thing that truly matters: the bottom line. This is where Google shareholders and officers worry. The interesting thing here is that Google, while it is dominant in online search advertising, search is no longer the dominant way people find content on the Internet. As people’s content detection and content trust processes change and shift more toward social media, Google might be left holding an empty bag. It may be number one in a fast-shrinking industry. That scenario is definitely several years away, but it’s worth paying attention to now.

Google is like Microsoft in several respects. It just really got caught by surprise by the spread of social networking. In addition, while owning the largest video website on the planet, YouTube, it’s really done lousy when it comes to video advertising and graphical advertising revenue. Finally, Google single sign-on initiative hasn’t really caught on. It appears that Google is simply sending out all these cutting-edge technology press releases to try to maintain its street credibility as an innovative company, but deep down, it’s really just a highly bureaucratized advertising company that is in danger of eventually being superseded by newer technologies or changes in consumer taste. In this respect, Google is more like Microsoft (NASDAQ:MSFT) than Apple. It definitely needs to step up its game; otherwise, it will be over soon. It may be the number one leader of a very small and increasingly irrelevant market.

Images Courtesy of DepositPhotos