Stocking Google?

“What if the stocks on Google crash one fine morning?” If that appears impossible then the possibility lies in the fact that the entire revenue of Google or probably most of it comes from the search engine operations. It ain’t that Google has no diversified products, but when they are less fetching in terms of income generated, Google has but no choice than to remain stuck with its search engine operations. Suppose its search engine fails all of a sudden to fetch an income that is needed for a minimum break even, you could then possibly imagine the plight of Google. That was if you remember the case of Yahoo way back in 1999. Now the question here is how could there be a possible prediction on a search engine failure. A better word to express my doubt shall be to ‘forecast’ the future of Google. Obviously as an economist, I would be compelled to take hold of a few variables, process them with a bit of assumptions and estimate with the trends, what the present conditions could generate.

Insiders Question

None need be taken aback if in fact it is revealed that there is something brewing within Google, which could be possibly thought of as a crisis. Insider trading of Google stocks is in itself much revealing. Why should they if search operations are still at its prime? Moreover, Google ad sense, which senselessly delays from sorting out a wide range of issues including the much reported ‘click frauds’ from its clients, could possibly ignite a fire. If that ain’t enough, consider the fact that there has been serious trouble for customers of Google trying hard to search for results and sites. They find in the course of time that there are voids in the place of sites and more of ads that pop up instead of results. If you take up each case separately, they have the quality of variables, continuously changing or rather falling in quality over the recent past.

Crash One Morning

So that might justify why Google’s dependence on search engine operations as its constant source of income might land it in trouble. A serious way out for this giant shall be a revival of its entire troubles through self correction or probably to diversify its source of income. Yet the poor investors on stocks of the giant search engine shall find them self with their fingers crossed till the moment when Google sensibly reveals itself through transparent policies. At the mercy of Google’s attempt, one has to remain silent, genuflect and hope for the best to show up. Till then the question remains: “What if the stocks of Google crash one fine morning”?