Google seem to be reaching a turning point. Their share price has gone down lately, but there’s no real problems within Google – it’s the world outside that’s changing. Bing is chipping away a little but Google is still the main search engine and at the centre of their business. The Android OS brings in very little cash for Google in comparison, with the OS being dished out free in an effort to get more people using Google services and thus click on Google ads. Google are finding that people don’t search as much now, with people instead asking questions on Facebook or Twitter, and advertisers realising that perhaps Facebook is a better place to advertise.
This CNN Money article states that “the party is over” for Google, as record growth figures begin to dwindle and the company looks for new services and products to keep the figures pointing the right way. It’s an interesting read, and shows how, despite the success of Android and the combined force of Google and YouTube, they’re now seeing a 21% drop in shares since January.
Link – CNN.com
Google – Tough times ahead
July 30, 2010