By Stock Charts | May 12, 2007
Google (GOOG) held their annual shareholder meeting a few days ago at the Googleplex. While the stock has been hit fairly hard pretty recently, I’m still bullish on Google for the long term. Here’s a great abbreviated series of summaries written I came across that touches upon the key points:
- Google Press Meeting Part 1 – Acquisitions
- Google Press Meeting Part 2 – Software
- Google Press Meeting Part 3 – Stock Split
- Google Press Meeting Part 4 – Censorship
Here are some longer articles about the meeting:
- Google Sticks with Dual Class Structure (CNET)
- Google Maintains it won’t Split Stock (Yahoo)
- Google Searches for Software Success (CNNMoney)
Although there has been some criticisms about Google’s recent acquisitions, I believe that by “diversifying their portfolio,” Google is building a strong foundation for future success. I also like Google’s move towards applications as well. I’ve had the opportunity to use many of Google’s Apps (Maps, Calendar, Gmail, etc.) and for the most part they have been innovative and filled with useful features. Some analysts have criticized Google’s tight focus on search; it appears that Google is taking steps to remedy this particular problem.
With China, the business minded decision is obvious. Profits and money have been driving China’s massive economic expansion over the past few years, causing a gradual shift towards capitalism in many respects. I believe that money and greed will be the ultimate driver in an eventual change in the Chinese government. It would seem that things are no different back in the US, with shareholders voting to approve censorship in order to continue operating in China. As a shareholder myself (albeit a very minor one) it is clearly the right business decision, as China is on the rise and it would be extremely unwise not to tap into this emerging market. Another round goes to the bottom line.
The one thing I don’t particularly like is their decision not to split the stock. While it is true that theoretically a stock split makes no difference, I believe that there is a psychological factor as well. Logically, it’s the same whether you buy 10 shares at 400 or 20 shares at 200, but the markets are not always driven by logic, as we’ve seen time and time again. Despite my personal dissatisfaction, the message that the founders are sending is clear: they refuse to cater to Wall Street’s whims. This is also evident in their steadfast refusal to provide guidance, something that has undoubtedly frustrated many an analyst. Even while sitting on a billion dollar empire, the founders have still tried to stay true to their roots, and for this I salute you, Larry and Sergey.For more stock news and chart analysis, subscribe to my RSS feed, or stock newsletter: