How Google Will Regain Investor Confidence In 2011

Inplace #2

thumbs_small.jpgADOTAS – Claiming that a company who’s stock is trading well over $600 per share has lost investor confidence is a dubious position. But 2010 was not a shinning year for Google despite likely beating Wall Street’s Q4 targets. Google has been trying to smoothly transition onto the social web and local advertising sectors but has hit roadblocks along the way. Groupon recently rebuffed the Internet giant’s 6 billion dollar offer.

New services offered by companies like Facebook and the thousands of mobile services now comand more attention online. Search is still the heart of Google, despite the many other areas they have made advances. But since Google’s stock underperformed the market in 2010, investors will be closely watching for meaningful mergers and acquisitions that transition Google into other fast growing sectors of the web.

“The key opportunity for Google in 2011 is to prove that the transition to mobile, social and local is a graceful one,” said Stifel Nicolaus & Company analyst Jordan Rohan. “Google cannot be perceived to be run over by, Apple, or Facebook.”

Google has added 3500 new employees in the last year and maintains a robust, if unpredictable. capital expenditures schedule. Android based smart phones are now top sellers over Apple’s iOS based iPhone. A staggering 300,000 Android phones are selling daily.

Remaining nimble enough to swiftly capitalize on the webs rapidly evolving landscape is Google’s real challenge. For some historical perspective consider that GE took several decades to accomplish its position as a corporate juggernaut. Google has done that within one decade. But resting on ones laurels is a recipe for decline.