Google stock: bad investment?
A number of investment advisors recommend not to buy Google stock. Former mutual fund manager Fred Kobrick says: Google is a great search engine but not a good stock.
He lists the reasons. The top one: wars in the search industry are not yet over. Google is a young company, the industry changes dynamically – it is hard to make a strategy forecast for years to come.
Google introduces a great amount of new products – some are useful and successful, others are failures. The impression is that in this way they simply test if some mud sticks. They are also a new kind of company – they can’t borrow the experience of other companies, their business models. For instance, they experiment with the work process arrangement when the employees spend about 20% time working at the projects they want. The impression is that Google experiments with everything and in every aspect.
People buy and hold the stock because Google is some sort of buzzword: everyone hears it, but nobody knows what they own and where they go to.
[via: cnn.com]
[tags]google, stock, money, investment, internet, search[/tags]