MappingTheWeb //

Google has been on a tear recently. The stock closed at a 52-week high today (just over $740 a share). The announcement of OpenSocial catapulted the stock to new heights. The upward climb has been fueled constant earnings blow-outs. But these can’t last forever. With every consecutive positive surprise, more and more pressure is placed on the company. Mark my word - one of these earnings reports will fall short of expectations and will stock will get absolutely hammered. A $300+ drop in a day is not out of the question. As they say, nobody stays at the top forever.

What are some potential flaws, faults, concerns, or dangers that the company needs to address or guard against?

• Revenue diversification - still completely dependent on advertising
• New search players and search technologies
• Click fraud issues

Their long-term strategy is still an enigma, although the platform move may give some indication. Nevertheless, it may also simply be a move to take the spotlight away from Facebook and regain superiority status. Google’s ability to work together with other companies and services is crucial. This brings us to another piece of news - or lack thereof. There is no GPhone. However, the announcement of Android may ultimately be a smarter move in the end. Finally, the integration and strategy surrounding recent acquisitions will be interesting to watch.

As I say, Google will not be at the top forever. What brings the company down is still a question mark. My gut tells me Google may even experience a similar fate to Microsoft - user backlash. The Internet giant used to be the wonder child of the net. Now, users are starting to voice their concerns with the bureaucratic Googleplex that has emerged.