Google (GOOG) Explored In New Book

Google (NASDAQ: GOOG) has been known throughout the world as being a one-trick pony, drawing 97% of its revenue from online-advertising. A Barron's article today discusses a new book on Google from Ken Auletta which makes a bullish case for the behemoth near-term, but raises some questions about its longer-term outlook.

Google is expected to generate EPS of $22.77 for FY09, up 17% from 2008, on $17.38 billion of revenue.

The article states that even at its $545 price 35 analysts rate Google a Buy or Strong Buy. Four rate it a Hold, in comparison. Bernstein has set a price target of $650, about $20/share above the Street consensus.

Noted, also, is how Sergey Brin, Larry Page, and Eric Schmidt share the top job, and must sign off on every choice, which critics believe will stifle creativity, productivity, and innovation. This, the critics believe, is what may lead to Google's downfall.

The article doesn't say whether or not Google can become more than just a one-trick point, citing potential reasons as size, hubris, distraction, and government opposition.

Google has also made their engineers the most important employees in the company, as opposed to MBAs.

Al Gore, who is on Apple's board and is also a Google advisor, said that "Steve Jobs has had the great, painful experience of failing and coming back...the wisdom that comes from failure hasn't yet punched Page and Brin."

Link to Barron's Article

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