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Economic Woes Don’t Scare Schmidt

CEO says Google's on firm financial ground

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Google’s stock first hit $430 per share in December of 2005.  It moved upward past the number in October 2006 and March of this year, as well.  Now the stock’s right around $430 again, and although the situation’s sure to frustrate investors, Google’s leaders believe their company is in good shape.

"This is the sixth or seventh cycle I’ve seen in Silicon Valley.  I think we’re better positioned than ever," CEO Eric Schmidt told a group of reporters.  Search advertising seems to be growing more popular every month, after all, and Google’s programs lead the pack.

Google Stock
 Google’s Performance Over The Past Year

Even if things take a turn for the worse, Google’s financial health isn’t subject to the whims of a few marketers.  Stephen Shankland writes that Schmidt noted, "The company has a very large amount of cash in very, very boring and secure investments.  That was the right decision then and especially the right decision now. . . .  [W]e’re fine."

Perhaps Google can’t be completely let off the hook; its stock has lost 18.6 percent of its value over the last year, while the Nasdaq’s down by 17.4 percent and Microsoft’s missing just 12.75 percent of its old price.  Still, Google’s ahead of Yahoo and the Dow, so some things are going right.

Look for the search giant to (possibly) get a bump when it completes its deal with Yahoo, too.

Economic Woes Don’t Scare Schmidt
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