Google is valuable, but the price it sold for was insane. Perhaps this is the last of the dot-come craziness - one more kick at the cat.
The biggest things that would concern me as an investor are: 1) A shaky revenue model, and 2) Big-time risk. Sure, Google is the best search engine today. But I think many people don’t realize just how easy it would be for Google to lose that position. Google is already suffering some problems. For instance, web-log linking is promoting blogs to the top of searches all out of proportion to their real value. It’s getting harder and harder to search for things on Google because the first few pages invariably are filled with fringe political sites and web logs.
Plus, there is going to be big-time pressure on Google to raise revenue by selling search promotion (company pays money to ensure that it comes to the top of a search for specific keywords), advertising, and other schemes that could degrade the quality of its searches.
Finally, it’s just software. Someone could come out tomorrow with a better search algorithm and Google could be chewing its dust in a month.
I’m tempted to short Google stock right now.