Sphinn - Will Google’s Algorithm change because of their share price?

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Will Google’s Algorithm change because of their share price?

Went Hot: March 18, 2008 - 9:55 am
Posted By: theGypsy 475 days ago
Topic Type: News Story (Jump to http://www.utahwebservices.com)
Category: Google SEO

Utah Web Servics - With that back drop what will change with the current process of evaluating billions of websites and how they are ranked, featured, marketed, promoted, placed and branded. What companies are they looking at acquiring, what is the magic formula that will get them back the market share they have lost and get there shareholders again drooling at the prospects of the magic men on wall street continuing their explosive growth.

13 Comments

Who Desphunn This (1)

Comments

from Gab 474 days ago #

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What market share have they lost? Did I miss some big study or something?

from bwelford 474 days ago #

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The only sure fire way of making more money is to make sure that all your stakeholders are delighted to be working with you and thus make sales grow. Who knows, the drop in share price might get the Googlers working harder at customer satisfaction.

from shansen11 474 days ago #

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The 95 Billion is a loss of market cap not market share. The equation is the number of shares issued to investors X the dollar value of the stock per share. Google is still the top search engine but that position is weakening quarter over quarter because of a number of factors, thus the reason for the share price fall.

from TinPig 474 days ago #

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@shansen11 - the post does refer, however, to a loss in market share -

"...what is the magic formula that will get them back the market share they have lost..."

further, i don't expect google would introduce severe algorithm changes in hopes to generate more revenue. it simply doesn't make sense to conjecture that google would forego their bread-and-butter.

from shansen11 474 days ago #

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Unless you have been the CEO of a public company with analysts, lawyers, auditors, accountants and board of directors under pressure all around you, it is difficult to understand the mentality. Bread and butter issues can change and change quickly, case in point the recent issues with Bear Sterns.

from Gamermk 474 days ago # - show/hide this comment

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This articles simply doesn't answer the question it asks and instead tells us to "watch for change". What else would we be doing?

from TinPig 474 days ago #

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i hear there's money to be made in coal mining these days.... maybe google will do that.

from shansen11 474 days ago #

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Interesting comments on this article. Allow me remind everyone of one statement "...Let me preface any of my comments by saying that this scenario is only hypothetical, my thoughts and what ifs, are based solely on my understanding of the equity markets and the extraordinary pressure placed on CEO’s and Board of Directors..."

From an investment perspective Google has been the biggest home run in history. Which is why they have been given a greater market valuation than both General Electric, Goodyear and AT & T combined. Unfortunately as the world changes so does investor confidence. In the latest quarter Google's growth rate has slowed, their revenue's have also decreased year over year and they are absorbing a number of acquisitions that have not yet contributed significantly to their bottom line.

This not only costs shareholders a bunch in case they have ridden it down, Google is also impacted based on their ability to acquire other companies using their stock as currency. More stock has to be issued because of the depressed valuations. There are many "Board Room" discussions that none of us are aware of. All of the business analysts, attorneys and finance guys who are now part of the Google culture are not techs and certainly not hired to counsel on Algo issues. They are there to protect the franchise, so their suggestions and ideas will come a different perspective.

Hopefully the founders will indeed protect what got them in this position in the first place. In regards to the mining comment, I am certain that they are already hedged with mining positions in Gold since it is trading at an all time high at over $1,000 an ounce. Coal not so much I imagine.

from Gamermk 474 days ago # - show/hide this comment

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We may not know the innerworkings or have theories of the innerworkings of Google (or whatever Big Corp), but we do understand that Google will have a lot of pressure on them.

You've posed a great question... and you simply haven't answered it. Without an answer or even a vague theory, I really fail to see where the value of this story is. Perhaps the 24 people that Sphunn it could enlighten me?

from shansen11 474 days ago #

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Thanks Gamermk your comments are appreciated. Unfortunately in a hypothetical scenario all you have is hypothetical solutions and observations. I will however detail some of my thoughts.

Here are the financial results for Google reported January 31, 2008
Q4 Financial Summary - Google reported revenues of $4.83 billion for the quarter ended December 31, 2007, an increase of 51% compared to the fourth quarter of 2006 and an increase of 14% compared to the third quarter of 2007.

1.   These are great numbers for any company. Unfortunately not as robust and explosive as they have been in the past thus the share price erosion.

2.   The SEO work that my team has done for any of our 600 clients contributed nothing to either the Google top or bottom line. Our PPC clients represent part of the solution but any organic listing does not.

3.    I believe that creative ways to expand sponsored placement could be a major discussion

4.    Identifying threshold buyers (companies that pay over a certain $$ threshold could be given preferencial treatment)

5.    With the addition of their blended search it is very possible to expand that just a bit further and blend other results

6.    Top sponsors and banners could push organic results further down the page to give perceived "top priority" to the companies funding them by the minute.

You get the idea but there are many ways to expand the relationships with current large paying clients and those using Google to manage branding for their products, names or services. As further evidence of Google's commitment to the financial community is their regular participation in investment banking conferences. They have no option but to participate in the financial conferences of all of the major money managers which drive some of the financial markets and have great influence over the investment population as well as their acquisition future, Evidenced by Google's participation in the recent Bear Sterns and Morgan Stanley conferences.

Final analysis is that Google is run by some very smart and savvy players. They understand the curent risks and have a vision of the future. They also will do all they are able to balance their search options. At the end of the day however, if the user experience is not a good one, it appears to be biased or manipulated in some fashion they run the risk of that user going to another engine. A risk that far outweighs most other pressing issues they are dealing with in the financial markets. There could however be some wiggle room to push the envelope a bit in a way that does not compromise the search but still creates new revenue lines.

from Gamermk 474 days ago # - show/hide this comment

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@shansen: Thanks for the reply. I'm going to be blunt and I hope you don't take offense. I would strongly recommend that you take the time to work with a copywriter. The fact is you just gave me answers in points #3-#6, but #1 and #2 have nothing to do with the question again. Furthermore, the whole conclusion isn't about the question either.

A piece such as you've written in order for it to be effective web content needs to really say:
Yes, and this is why and this how is they'll do it.
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No, and this is why and this is how they'll adapt instead.

Because while certainly you've got a fantastic grasp on the English language and clearly are intelligent, you simply don't seem to understand that you've sometimes gotta keep the answer short and more importantly to the point.

After all, I'm not asking for you to be able to back up what you are saying perfectly. I accept that you are just theorizing and as I said before, you've picked a great question, however what your response really needed to be was #3 - #6 with expanded theories on those points rather than talking for a long time about what my question wasn't even about.

from shansen11 474 days ago # - show/hide this comment

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@Gamermk: As fun as this is to banter back and forth with you. I have a number of companies to run. Good luck!

from boomclicks 473 days ago #

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This is an example of somebody just writing an "article" in order to get traffic. SI did it yesterday with a post on their FanNation site about the Pens trading Sydney Crosby...same thing here.