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Google Breaks Down

Google's not going anywhere, that's agreed. But that doesn't mean their stock won't. They'll continue to grow, but at decelerating rates. In the current environment, a PE in the low to mid-twenties is a reasonable expectation for GOOG.

Google Merchant Search: How Far is Too Far?

Google will continue to aggressively push these boundaries. In a world driven by information, this is Gaia, and they know it. Look for them to win sometimes, draw elsewhere and loose sometimes. At the end of the day, they are data driven and avoid huge missteps.

Is Google Interested in Ormat's Geothermal Technology?

There's enough geothermal energy 3 miles does on the west coast, such that harvesting 2 percent would supply for the entire nation's electric needs. With modern drilling techniques learned from the oil industry, it is within reach. Given that energy is of long term strategic interest to Google, it is easy to understand why they seek to make it a competitive advantage. It doesn't hurt either that the public will further enshrine Google if it helps bring long term relief to energy costs as well as decrease our dependence on rogue nations.

Is Google Its Own Worst Enemy?

While I somewhat agree with what you say, one day in the not so distant future, you will wake up and say:

Gee, 1,000 new business per day signing up for Google Apps, I guess that was a big thing after all.

Or gee, getting people to embed Google Maps, Google Analytics and Google Bla Bla Bla into their web sites, everywhere, that was huge.

Or, gee, Google Friend Connect and OpenSocial, that enabled the the average guy to create a Web 2.0 social networking site, that really was a trendy and spot one idea, especially because they can do it on Google Sites or Google Blogger.

Or, gee, Google Apps Engine, hmmm, now that was a really subtle way to become the Internet application engine.

And then you'll realize that the technology in and the worldwide build out of the "Googleplex" infrastructure has given them an advantage that no one, not Microsoft, not MicroHoo, not Amazon S3, can compete with with. And they funded it with a hugely disruptive search/advertising business model. And they have now figured out how to monetize it while reducing costs for such services to customers. And they have done to Microsoft what Microsoft did to IBM.

And you'll then understand what they were up to and why they are hiring so many people and why they are so secretive about the Googleplex. Because they're increasingly, through the Googleplex, becoming the operating system of the Internet. If that's not a killer app, then nothing is.

But don't feel alone, I know very bright people who work at Google who don't get what Google is up to. If there is a "slowing metabolism", it is made up for in multiples by increased brainpower and scale.

Disclosure: Long on GOOG

Why Buffett Would Not Buy Google

“Favorable long term economics” for a software business are a direct result of how many developers are actively writing to your APIs and how well you monetize the platform. No business analysis I've read appreciates what an Internet operating system is, what Google is doing in that regard, and how well it is positioned to monetize the platform.

Microsoft was king of the PC revolution an will maintain that franchise for decades because if this. Google is the Microsoft of the Internet operating system. Multiply Microsoft's current success by some yet unknown order of magnitude and you have Google in 10 years.