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Henry Blodget on Google - MasterMaq.ca Blog
The infamous Henry Blodget took up blogging last year, and regardless of your opinions about him or your memories of the dotcom bubble and subsequent bust, he has some interesting thoughts. His latest focus on Google, which has been enjoying quite a steady ride north on the stock market lately. Here's what Mr. Blodget has to say: No one else is writing this piece, so it will have to be me. I should say upfront that I'm not predicting that this will happen (yet), and I'm certainly not making a recommendation. I'm just laying out a scenario that could kick Google in the kneecaps and take its stock back to, say, $100 a share. Google's major weakness is that it is almost entirely dependent on one, high-margin revenue stream. The company has dozens of cool products, but with the exception of AdWords, none of them generate meaningful revenue. From an intermediate-term financial perspective, therefore, they are irrelevant. So, the question is, what could happen to AdWords, and what will