Five Reasons to Sell Google
Google (GOOG) CFO Pat Pichette told investors at a Credit Suisse tech conference June 9 that the company is working on "big, complicated problems, building solutions for decades."
The message, while grand, didn't exactly answer a more immediate question among shareholders: How is Google going to get business growing again?
The recession stalled the Internet search industry and handed Google its first ever sequential sales decline last quarter. The cool-down ended a long, prosperous run for the search shop, and it may mark the end of the era of Google's ever-expanding dominance.
That doesn't mean Google won't continue to have the biggest tent in the Internet advertising show, nor will it soon start dismantling its vast Web works. But Google's greatest growth sources are sputtering, and other ventures aren't picking up the slack.Five reasons to sell Google:
Beyond SearchSearch ads are a wonderful trick, but it's still only one trick, and Google has not had any breakthrough success in other areas beyond search. YouTube, for example, continues to be a popular service and Google still hasn't found a way to make money from it. By some estimates, Google loses between $200 million to $500 million a year on the video site.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV