Jul 20, 2006

Looks like Google's Wall Street Honeymoon may be over. Even with 2nd quarter earnins which topped the streets expectations, their stock price is flat. Overall, earnings certainly look healthy - Adwords, Adsense and the supporting cast delivered $2.5Billion in one quarter. One interesting thing to note is that their TAC costs seem less than I expected - at about $780 (30% of total revenue).

Nice Work Google - now let's see how the Markets respond in the days and weeks ahead. One thing seems evident, Google's strategy for monetizing product features will be closely scrutinized from now on. I expect Wall Street to gradually start to exert a little more influence on Google's Product Plans soon.

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