Saturday, April 16, 2011

Google’s “just trust us” is no longer enough | FT Tech Hub | FTtechhub - Industry analysis – FT.com

A snapshot from Larry Page’s second week as CEO redux

Investors aren’t necessarily averse to a period of higher investment. What they hate is the thought that costs are getting out of control as the company fights on multiple fronts at once, with no end in sight and no idea of how the cost structure of the company will finally settle down.

The “just trust us” approach that Google has adopted with Wall Street in the past doesn’t work at a time like this. Its shares are likely to stay under a cloud until either the cost growth levels out or it can find a better way to explain what is going on.

Google’s “just trust us” is no longer enough | FT Tech Hub | FTtechhub - Industry analysis – FT.com

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