There has been talk for a couple of years of a 'tech bubble', with investors fearing that the valuations of technology firms can't be sustained in the long term. But Investors, like the general public at large, don't always understand what technology firms are up to and business models for online companies can be murky.
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Google's founders, Sergei Brin and Larry Page, brought Eric Schmidt in to run the company in 2001 because it was feared that Wall Street would consider them - both in their twenties - too young for the role. Page didn't take over as CEO until 2011The geeks from Silicon Valley might not always be the best people to reassure Wall Street about this either. Google's founders, Sergei Brin and Larry Page, brought Eric Schmidt in to run the company in 2001 because it was feared that Wall Street would consider them - both in their twenties - too young for the role. Page didn't take over as CEO until 2011.
The challenge for the company now is bigger than convincing Wall Street: it needs to work out how to stop people leaking away from search
One of the smartest moves Dick Costolo has made as chief executive of Twitter might be to reject talk of the company floating any time soon. Last month, he told CNBC that he believes his company will still be private in five years time. Twitter might not be making massive revenues yet but at least there are no shareholders calling for instant results.
It's the shift to mobile that seems to be undermining the companies that have dominated the web over recent years. Facebook expressed concern about its potential to make money from mobile just before floating earlier this year and now Google's revenue appears to have been undermined by a shift away from traditional search.
The challenge for the company now is bigger than convincing Wall Street: it needs to work out how to stop people leaking away from search.
Courtesy: Telegraph UK
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