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---- Why does the 'Google Lag' exist?


dauction - 3:03 am on Oct 2, 2004 (gmt 0)


This "sandboxing" all started with Google going public.. it is relational to that process imo

The easist way to show strong profits is to cutback on labor , hardware , and investments in research ..

It could be that the investment bankers /firms wanted "assurances" prior to IPO that G would show immmediate continuing PROFITS .. These investment firms cannot profit themselves unless G's stock rises ..so in G's very first 10Q if G reports a loss or stagnant profits ..the stock price drops and the big investment firms are not going to be happy...

So maybe G is in a conservative mode..maybe G isnt allowed to make changes on a dime anymore.Maybe Changes are stuck in the board room now?

Maybe sites are sandboxed because the expense of adding new sites and all that surronds those entries is enough that they negatively affect earnings?

Isnt this the strategy that MSN did for the longest time...they had high profit margins on their search because they cut back on the expense of updating and adding new sites..that works short term but they played it so long that now they are having to totally rebuild search.

I dont know ..just something to consider..maybe G just cant shoot from the hip anymore..they are now a public company and every move will need layers of approval ...


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