GOOG Moment of Truth

It’s been interesting to watch GOOG loose 200 points and hardly a mention… it’s almost like Barack Obama and Tony Rezko, it doesn’t fit the narrative so let’s ignore it.

More significantly, we are now seeing analysts downgrade GOOG, something that is certainly a new phenomena for the company. But this post isn’t about schadenfreude, it’s about inflection points.

Google has had an amazing ride so far and one that has been remarkably free of perilous moments. What we are witnessing now is the, I believe, defining moment for this company. We will see if they really are different from all other publicly traded companies because while it’s easy to ignore Wall Street when your stock defies gravity, it’s a lot harder to do so when your employees are bitching about their options.

While GOOG’s market cap at $161 billion isn’t going to create chaos at the Googleplex, it is moving in the wrong direction at the very moment they can least afford it. Will the company pare back on the many perks that the company is well known for? Will Eric Schmidt have to start making the hard choices that CEOs have to make in order to meet expectations and manage investors? We will see but let’s put all this into perspective by recognizing that this is a company that disappointed analyst expectations because the earned $4.43 (excluding option expense) a share instead of $4.44…


Aberdeen Scrutinized by WSJ

Enterprise software research firm Aberdeen went under the microscope of WSJ columnist Lee Gomes. What follows is a pretty nasty dissection of their business and the indictment that the firm is no longer a research firm, instead being just marketing under a different name.

The WSJ article is reg required so I’m not linking to it, but Jason Busch has a really good commentary on it worth reading.

The only analyst firm that NewsGator is a client of is Forrester, primarily because between Charlene, Oliver, and Jeremiah they cover the full spectrum of our business sectors, which the other firms do not. I also think their research is a little edgier than Gartner.

What followed was essentially a critical examination of the Aberdeen business model. To summarize, vendors pay what the story suggests is around $30,000 on average, to be featured as a sponsor of a single survey (there were 212 reports published last year each “typically with four or five sponsors”). According to the columnist, Lee Gomes, “Most of the half-dozen Aberdeen sponsors I talked with described the attraction of sponsoring a report as a chance to rise above the noise of the marketplace by being associated with something customers consider ‘research’.”

[From SpendMatters: The WSJ Shows No Love for Aberdeen]