Comments on: Google the good in Q4 http://features.blogs.fortune.cnn.com/2009/01/22/google-the-good-in-q4/ From Microsoft to MySpace, Fortune magazine writers share their unique insights about the business of technology every day. Fri, 13 Nov 2009 15:29:01 +0000 http://wordpress.com/ hourly 1 By: Mike, Newtown Connecticut http://features.blogs.fortune.cnn.com/2009/01/22/google-the-good-in-q4/#comment-10585 Mike, Newtown Connecticut Fri, 23 Jan 2009 18:41:46 +0000 http://gowest.blogs.fortune.cnn.com/?p=359#comment-10585 "you are going to see less and less advertising" I think we will see more advertising early this year. Major corporations are following the age old rule of gaining market share while everyone is down. The tables are going to turn for those who spend the most in marketing right now. Google will suffer its low-end ad word programs but brokering larger volume accounts through double click and ad vendors will probably sky rocket for the corps. with deep pockets. “you are going to see less and less advertising”

I think we will see more advertising early this year. Major corporations are following the age old rule of gaining market share while everyone is down. The tables are going to turn for those who spend the most in marketing right now. Google will suffer its low-end ad word programs but brokering larger volume accounts through double click and ad vendors will probably sky rocket for the corps. with deep pockets.

]]> By: James, Arlington VA http://features.blogs.fortune.cnn.com/2009/01/22/google-the-good-in-q4/#comment-10584 James, Arlington VA Fri, 23 Jan 2009 07:35:05 +0000 http://gowest.blogs.fortune.cnn.com/?p=359#comment-10584 Sorry, this stock and company are over-valued. As the recession hits harder and more companies are dissolved and go out of business, you are going to see less and less advertising, especially in the 'ghost' market where you never know if anyone is even looking at the ad placed and they can cook the number of hits. Google is a house of cards waiting to fall. Remember years and years ago, Yahoo was in Googles place and look where they are. Sorry, this stock and company are over-valued. As the recession hits harder and more companies are dissolved and go out of business, you are going to see less and less advertising, especially in the ‘ghost’ market where you never know if anyone is even looking at the ad placed and they can cook the number of hits. Google is a house of cards waiting to fall. Remember years and years ago, Yahoo was in Googles place and look where they are.

]]> By: John, NYC, NY http://features.blogs.fortune.cnn.com/2009/01/22/google-the-good-in-q4/#comment-10582 John, NYC, NY Fri, 23 Jan 2009 04:01:56 +0000 http://gowest.blogs.fortune.cnn.com/?p=359#comment-10582 Stock options is a scam. It is basically an expense but doesn't show up in cash flow (shows up slowly as dilution!). Why not just hand out the cost, $460M, as bonus and be upfront about it since clearly that amount is a cost necessary to retain employees? That will help stockholders evaluate the company better. Look at Microsoft - they diluted over the 80-90s through options but are paying the cost now by buying back shares with their cash; thus, the cost of the 80s/90s are being borne now. It would have been a lot cleaner to pay as you go. Stock options is a scam. It is basically an expense but doesn’t show up in cash flow (shows up slowly as dilution!). Why not just hand out the cost, $460M, as bonus and be upfront about it since clearly that amount is a cost necessary to retain employees? That will help stockholders evaluate the company better. Look at Microsoft – they diluted over the 80-90s through options but are paying the cost now by buying back shares with their cash; thus, the cost of the 80s/90s are being borne now. It would have been a lot cleaner to pay as you go.

]]> By: Mike, Boston MA http://features.blogs.fortune.cnn.com/2009/01/22/google-the-good-in-q4/#comment-10583 Mike, Boston MA Fri, 23 Jan 2009 00:05:10 +0000 http://gowest.blogs.fortune.cnn.com/?p=359#comment-10583 Repricing of employee stock options is prudent. Employee stock options are the primary wealth creator in Silicon Valley. Handsomely rewarding employees who create wealth enables you to recruit new top talent, creating a virtuous value creating cycle. Contrast this with firms in other industries, such as financial firms. Typically these companies will reward on the upper echelon management ranks, and will do so despite dismal results. Meanwhile, employees at these firms recieve a much smaller reward for the value they create. This reduces their productivity and decreases the corporation's ability to attract new talent. Google's profit reductions this quarter were the result of book value impairments that had nothing to do with the majority of employees, so why should they impair their future productivity and innovation just because a few investments went south? Repricing of employee stock options is prudent. Employee stock options are the primary wealth creator in Silicon Valley. Handsomely rewarding employees who create wealth enables you to recruit new top talent, creating a virtuous value creating cycle. Contrast this with firms in other industries, such as financial firms. Typically these companies will reward on the upper echelon management ranks, and will do so despite dismal results. Meanwhile, employees at these firms recieve a much smaller reward for the value they create. This reduces their productivity and decreases the corporation’s ability to attract new talent. Google’s profit reductions this quarter were the result of book value impairments that had nothing to do with the majority of employees, so why should they impair their future productivity and innovation just because a few investments went south?

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