Tuesday, October 23, 2007

Searching for answers on Google Analyst Day

When the market-share leader in Web search reported another stunningly strong quarter last week, management artfully dodged questions about possible plans to enter the mobile devices market, even though speculation has run rampant that Google is working on a so-called Gphone.

In many respects, Google chairman and CEO Eric Schmidt and co-founders Larry Page and Sergey Brin have become a three-headed Silicon Valley version of Alan Greenspan: masters of obfuscation.

This may (or may not) change on Wednesday, however, when Google holds its eagerly awaited analyst day at the Googleplex in Mountain View, Calif.

Analysts will have many questions about where Google is headed and hopefully Google will provide some real answers.

“I expect Google to be pretty forthcoming about big strategic moves. They will be open about where the company is going,” said Marianne Wolk, an analyst with Susquehanna Financial Group.

Here are a couple of the most important issues that are sure to come up during the presentation.

  • Will YouTube and online video advertising ever become a major contributor to revenue and profits?
  • Is Google really looking to take on Apple (AAPL) in the mobile phone business?
  • Is Google concerned about recent enhancements made by Yahoo! (YHOO) and Microsoft (MSFT) to their search engines as well as an increased marketing push by IAC’s (IACI) Ask.com?
  • How well is Google’s payment service Google Checkout doing compared to eBay’s (EBAY) PayPal?
  • What plans does Google have for online ad placement company DoubleClick — assuming that the deal passes regulatory muster in the U.S. and EU?
And finally, what does Google intend to do with its $13.1 billion in cash?

TechDigi will update you the latest news regarding the meeting.

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