This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Five Dumbest Things on Wall Street: Jan. 15

Google's China Challenge

The Chinese have Baidu (BIDU) so they don't need Google (GOOG - Get Report). Nevertheless, they would be making a dumb decision if they let Google go.

Google, one of the world's fastest growing and game-changing technology companies, said Tuesday that it's no longer willing to censor its search results in China and is considering shutting down its Web site and its offices in the country. Google announced plans to meet with the Chinese government over the next few weeks to discuss the basis on which the company can "operate an unfiltered search engine within the law, if at all."

Google's statements were prompted by evidence that computer hackers had accessed the email accounts of Chinese human rights activists. Google also said it discovered that at least 20 other large companies from a wide range of industries were targeted by hackers.

"These attacks and the surveillance they have uncovered -- combined with the attempts over the past year to further limit free speech on the Web -- have led us to conclude that we should review the feasibility of our business operations in China," said David Drummond, Google's senior vice president, corporate development and chief legal officer, on the company's blog.

Wow! Unlike Yahoo! (YHOO) which folded like a cheap suit over censorship in China, the gang at Google is making a moral stand on the Mainland. To which we here at the Five Dumbest Lab say, 'You go Google!'

Of course, Google derives a nearly immaterial amount of its $22 billion of annual revenue from its Chinese operations so it's not like it's giving up the keys to the kingdom. China represents about 1% of Google's sales, according to analysts' 2009 estimates. Given the size and rapid growth of China's Internet market, that portion is expected to grow this year.

No matter its true motive, Google is challenging the Chinese over their abusive practices and we applaud it. If the innovative tech giant pulls up its stakes and leaves China, then it's China's loss. We know stupid when we see it, and we hope the Chinese recognize that censorship is anything but a smart way to get ahead.

Dumb-o-meter score: 85 -- We don't think Google will leave China, but we admire Larry Page and Sergey Brin's brinksmanship.
3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CMCSA $61.29 -1.40%
GS $206.78 -0.27%
GOOG $631.00 1.20%
GE $26.20 1.70%
KOSS $2.32 -3.73%

Markets

Chart of I:DJI
DOW 17,500.62 +60.03 0.34%
S&P 500 2,067.64 -12.01 -0.58%
NASDAQ 5,039.7760 -48.8540 -0.96%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs