February 18, 2006 Comments
|
|
A little more than a year after their attempt to shake up the IPO world by selling shares through a Dutch auction designed to give the "little guy" just as much chance at buying in as the big investors have, Google seems to be giving in to traditional Wall Street tactics and shifting their attention toward the big money buyers.
TheStreet.com contributor Kevin Kelleher had an article on Friday that talks about Google's move to gather feedback from high-end stock buyers. Kelleher's article comes on the heels of Jonathan Burr's article about Google's shift toward traditional Wall Street thinking and their call to certain investors asking what they'd like to discuss at next month's investor's phone call.
The call, coming up on March 2nd, will aim to gather some insight into why Google's stop has experienced an 18% loss so far this year. From Kelleher's article:
But hold on: Wasn't this the same company that threw down a gauntlet in its now legendary IPO prospectus, declaring it wouldn't kowtow to the self-serving rules of institutional investors? In April 2004, the tech pundits declared that a big blow for the small investor.
Here in February 2006, it seems that losing nearly $40 billion in market cap in a few weeks can demolish a lot of ideals. Now that the chart of Google's stock has started to resemble that of a myocardial infarction, the company is keen on reaching out to investors -- not all investors, only those who bought big chunks of its secondary offering last year.
For any poor slob who managed to buy 1,000 shares in the Dutch-auction process that was supposed to change things for the better -- well, it seems you're out of luck.
Why does this matter to Google? Well, let's say you're working in a cubicle in the moronically-named Googleplex. You've bought the line about how Google is fighting for the small guy, making money while making the world right.
It seems that Google's swan song with Wall Street and the media may be coming to a close. Kelleher's article is filled with the type of cynicism that has been hotly directed at Google over the past few weeks and months.
As Google said, "If earnings figures are lumpy when they reach headquarters, they will be lumpy when they reach you." Lumpy earnings are one thing. Lumpy ideals -- that is, shoving your half-baked ethics down the world's throat one quarter, and abandoning them in the next -- well, I'm not sure Buffett is smiling.
Jennifer Laycock is the Editor of Search Engine Guide, an educational web site aimed at translating the search marketing world into something that small business owners can understand. Jennifer specializes in common sense search engine marketing, viral marketing and customer outreach via social media and blogs. A former search marketing consultant and in-house trainer, Jennifer’s clients have included companies like Verizon, American Greetings and Highlights for Children. Her primary clients now are a little girl named Elnora and a little boy named Emmitt.
|
|
|
Search marketing information for small business owners.
Fetching the best small business news.
A friendly place to share small business ideas and knowledge.
A different kind of small business marketing conference.
The directory of the best small business sites and tools.
Home of our network.
Copyright © 1998 - 2009 K. Clough, Inc. All Rights Reserved. Privacy
FreeFind Site Search Engine - FreeFind adds a "search this site" feature to your website, making your site easier to use. FreeFind also gives you reports showing what your visitors are searching for, enabling you to improve your site. FreeFind's advanced site search engine and automatic site map technology can be added to your website for free.
(Unpaid placement - FreeFind is a Search Engine Guide partner.)