Thursday, February 02, 2006

Google: reaping what they've sown?

I recently wondered if caving to Chinese censors was a good idea for Google to do. Considering their major bloodletting yesterday, I think it's fair to question how much (if any) impact that business decision had on Google's stock plummeting. From Breitbart/AP:
Google Inc. shares sank Wednesday after its earnings report disappointed Wall Street and stunned almost everyone who follows its stock, except the company's founders.

Co-founders Larry Page and Sergey Brin have always insisted they will run their 7-year-old company the way they want, even if it means ignoring stock market pressures to hit a widely watched earnings target.
Yeah, THERE'S a great approach to Wall Street: "Stocks, schmocks! And who cares what potential investors think or want?" Nothing attracts future investors like a wanton disregard for (a) capitalism and (b) fiduciary responsibilities! Continuing:
Google then provoked more angst last week by launching a new search engine in China that will censor some results to comply with the country's free-speech restrictions.
Where have I heard that sentiment before? Oh, yeah, now I remember: from me! :-)

Google is free to run a business any way they want, even caving to Chinese censors. They are also free to experience the backlash resulting from their business decisions.