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Google Inc. Message Board

  • quickstep3 quickstep3 Jan 22, 2006 2:23 PM Flag

    My take on GOOG 1.

    GOOG is not a tulip bubble. The only and huge difference between the tulip and GOOG is that the tulip mania was not based on production or service to the general public, and GOOG provides a real service that itself generates profits. Tulips did not provide anything. The profits came from reselling the bulbs and the bulbs did not do anything to improve the welfare of the buyer. GOOG provides service that delivers information and knowledge to masses and generates income by profiting from this service.
    The need for information and knowledge will never stop, or slow down, because information and knowledge opens the door for an ordinary individual to better his life, and that is what draws masses to use GOOG services. That is the reason that GOOG and other search engines will have plenty of room to grow. The pie that they split among each other will grow, and, IMO, GOOG share of the pie will grow on the top of it.
    Page and Brin saw it coming and that is the reason they set GOOG IPO price that high. That is the reason they do not want government paws in their business. They will comply with business and financial requirements that every company is obligated to comply with, like paying taxes, but they want to run their business according to their vision, their understanding of it, and their vast knowledge that comes from just working in the knowledge business.
    The government has to find and found its own resources that will provide data for whatever it needs to know ( which may start a new paradigm shift, like US government internet initiative eventually changed the world ).
    Funny thing is that GOOG battle with subpoena indicates that we do not need liberal institiutions like ACLU or labor unions to defend masses. This task will be dealt with by companies that want to protect their business model and their profits. But that is a different subject.
    GOOG does not have to buy land, maintain buildings, buy and maintain production machinery and even outsource any production overseas. Their overhead in terms of high cost assets is low, and they can plunge a big portion of their profits to grow their services, making them better and more accessible to everybody. The stability of their business does not lie in tangible assets, but in market share and in ability to access all the information that is to be found. And these are the barriers to entry for their competitors

    cntd: next message.

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    • I agree with you goog has a good business model and has a historical role in helping people getting info.

      Their ppc is in question
      that is why their stock is overvalued

    • "GOOG is not a tulip bubble. The only and huge difference between the tulip and GOOG is that the tulip mania was not based on production or service to the general public, and GOOG provides a real service that itself generates profits. Tulips did not provide anything. The profits came from reselling the bulbs and the bulbs did not do anything to improve the welfare of the buyer. GOOG provides service that delivers information and knowledge to masses and generates income by profiting from this service.
      The need for information and knowledge will never stop, or slow down, because information and knowledge opens the door for an ordinary individual to better his life, and that is what draws masses to use GOOG services. That is the reason that GOOG and other search engines will have plenty of room to grow. The pie that they split among each other will grow, and, IMO, GOOG share of the pie will grow on the top of it.
      Page and Brin saw it coming and that is the reason they set GOOG IPO price that high. That is the reason they do not want government paws in their business. They will comply with business and financial requirements that every company is obligated to comply with, like paying taxes, but they want to run their business according to their vision, their understanding of it, and their vast knowledge that comes from just working in the knowledge business.
      The government has to find and found its own resources that will provide data for whatever it needs to know ( which may start a new paradigm shift, like US government internet initiative eventually changed the world ).
      Funny thing is that GOOG battle with subpoena indicates that we do not need liberal institiutions like ACLU or labor unions to defend masses. This task will be dealt with by companies that want to protect their business model and their profits. But that is a different subject.
      GOOG does not have to buy land, maintain buildings, buy and maintain production machinery and even outsource any production overseas. Their overhead in terms of high cost assets is low, and they can plunge a big portion of their profits to grow their services, making them better and more accessible to everybody. The stability of their business does not lie in tangible assets, but in market share and in ability to access all the information that is to be found."

      Agreed

 
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