With Google withdrawing from China, many with a hand or a dollar in the company are wondering where the internet Goliath stands as an investment.
Analysts are thinking that not much has changed for Google. Though the loss of China may prove highly influential in the long term, in 2010 Google.cn was only a small part of the company's massive total revenue.
In the future, it's likely that Google won't stay entirely separate from China and eventually infiltrate the market with their phone, the Android. The Android is encountering problems domestically as the phone struggles against its Apple competitor, the iPhone.
Despite the Androids slow start, advertising revenue, including mobile ads are helping bolster profits.
China's decision to cut off Google as their main search engine rather than cooperate with Google was surely motivated both by the nation's desire to assert itself and also to help domestic search competitor Baidu, become more influential.
As for Google, their decision to exit and allow Baidu to take their place as China's search engine, the company was motivated by a mantra in place before Google became the goliath it is today. "Do no evil," though becomes increasingly difficults as the company reaches a size where every move inspires a nationwide response and media frenzy.
About EQUITIES:
Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on our website, as well as select content at www.nasdaq.com. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community.
Sign up for a free one-year subscription