Not too long ago, we were talking about this article:
http://www.businessweek.com/magazine/content/10_2…
Google has launched it's own trading floor. Primarily, to manage their treasure chest of cash reserves.
This story is much more interesting when you think about Google's capabilities with the data that they have available in front of them. They can spot news trends, current events etc in real time. So when Eric Schmidt said the following, my mind really got buzzing.
“There are many, many things that Google could do, that we chose not to do.”
“One day we had a conversation where we figured we could just try to predict the stock market. And then we decided it was illegal. So we stopped doing that.”
http://www.michaelcovel.com/2010/10/25/eric-schmi…
I just wonder if they were to truly put their programmers to work to focus solely on the market, what they'd be capable of.
They'd be front running the entire investing public.
It's like taking the breadth of news received on a Bloomberg terminal, and processing it all at once. Which gets me on a different train of thought..could Google create a live news feed service of what is trending in the market? They'd pick up on a small story before it ever even got to a Bloomberg terminal.
Google is always an interesting topic of discussion because they undertake some really cool projects. They've got such an edge in terms of what is on people want to think of, eat, what they desire to know, consume etc.
If you had all of the information Google had, what would you do with it?
Google is a great and innovative company. Honestly, I believe at some point the government will begin viewing them as a monopoly and split them like microsoft.
If I had to pick one company to be a monopoly, I would pick google.
they are just a search engine, there are a tonnnnn of them. if they become too big in everyday computing needs, then you can argue its a monopoly. but for now its just a search engine (obviously in simple terms).
i wouldn't be surprised if they are in the works for some sort of a device to use in their trading flow to gather news peaces across the web. heck, twitter is used to determine the mood of USA using certain keywords (heard that one on the news a few weeks ago). if tweeter did it with cell phones, i am sure google is either working on something similar or already done. they have all the brain power they need with world class engineers, just doesnt sound like a difficult project for google...
lol, is this a joke? If you think all google has it's hand in is a search engine you are fucking retarded.
Google became a lot more than a search engine years ago.
http://www.google.com/corporate/
It's good that they are ambitious, but may be spreading themselves too thin. If you go back a ways you may see some negative parallels between Google and Sun Microsystems. Not saying Google will die out (quite the opposite), just saying that people are a little bit high on the brand in relation to its growth potential.
This topic was brought up a while ago. I think it is fine that they are managing their huge reserves, but they should either deploy that capital and acquire or returned it to investors. Google is a tech company, not a prop trading firm. I would hope that the trading they are getting into is only to maximize a very safe and reliable yield.
If this is not the case I think it should raise eyebrows for anyone invested in Google.
Whereas I understand what you're saying, I disagree. If Google decides to get into any type of trading it will be far from half-assed. Google has excellent leadership and is a name that everyone knows. They will be able to attract the smartest and most intelligent people to head up any type of financial division they decide to stick the Google name on.
the more google matures, it seems to be dipping its hands into everything, literally, everything. Yet it doesnt do so without truly debating the consequences and debating whether or not it hurts/helps the brand of google.
Personally, i think its a great move that shows their power across various areas, and allows them to be proactive with their own cash.
They already do have google finance with news feeds yadda yadda yadda, but... could this be a move to one up the competitors in this space potentially? and make then the go-to spot in yet another sector?
All I know is that if someone ever makes a movie called "The Search Engine," it will be absolutely epic.
I agree that Google will not do things half assed, but if investors are putting their money into a tech company and it starts acting like a prop shop I think you will have negative reactions. Google should stick to tech and let finance companies do the trading.
to play devils advocate, what if theyre hiring a slew of top finance guys, traders, front and back office people and set up a legit operation...
then whats wrong with it. its a tech company who trades.. would be no different
DMCD kind of hinted at what I was getting at (see post above).
Added to that is the fact that they would probably be able to create some sort of new mind blowing trading software or something. Remember, pretty much everything google gets into they revolutionize it.
This entire thread with the exception of Anthony and few others reads like one big accumulation of unreflected incorrect bullshit reurgitated by deluded google fanboys
I'm not so sure about this logic. I see where you're coming from but I mean GS, DB....these firms supposedly hire top talent and they did some pretty asinine things over the last 5 years.
Same goes with Tyco, Enron...
Seems like every single time a person or company is in the position to make money they're eventually going to do something stupid to make more, no matter how smart they are.
I try not to be a cynic but at this point I don't put anything past anyone, no matter the name on their diploma.
Thats fine, they can trade, but they might want to change their GICS code and tell investors that they are no longer tech/internet provider, but now a tech/prop shop.
People invest in companies and diversify for a reason. Google does tech extremely well, but do you think they are going to be able to complete with GS while still focusing 100% on tech? I do not.
Goldman isn't getting into the search engine business and Google shouldn't become a legit trading shop.
This is all academic since, if I remember correctly, this trading operation is about their large cash position and maximizing the yield on it.
I agree completely, but we are entering a new age. Right now wall street and anything having to do with it isn't exactly trusted by the general population. Further, we have seen over the past 10 years that companies are starting to break traditional roles of business and that is leading to innovation. The way google runs their company is unlike the typical business mold, especially for the finance industry and especially compared to a firm like GS.
The thing that google does that a lot of other companies don't do well is manager their divisons separately. If they were to create a google finance division, I could assure you with 100% confidence the people operating that divison of the company would not be coming over from google's android rnd team, you know what I mean?
Maybe a little venture into the world of finance might actually bring about some cool innovation.
Ive said this 3 times on WSO. This will be my 4th.
Google = Skynet
Long GOOG
Haha
So true
It is funny how we discuss government invasion of privacy when in the same breath we clamor to give Google more and more of our information. How smart would it be for the government to set up a private entity (like Google) and just get us to give away all of our secrets.
What if the name of that organization were Google? Brin and Page were picked at Stanford. The whole "started small from a garage" story just gives a feel good story to the government's operation.
Now, you search all of your thoughts via Google. Probably have an email address through them. Maybe get news and directions, even do your shopping.
Probably the farthest reaching conspiracy theory of all time, but funny to think about. Government can't do much right in terms of business.
I would be extremely confident that Google was a government front if it was trillions of dollars in debt and on the verge of bankruptcy or they were minting money...oh fuck.
Regards
Yeah, I agree. Time will tell. I just think that historically, when companies stray from their core business, bad things happen. If any company could break this pattern it is Google.
It'll definitely be interesting.
haha, okay tough guy, for someone who doesnt want to prove anything to an anonymous stranger, you are explaining awfully a lot about yourself (i am looking at your behavior now instead of what you type, which i really could care less about)..... i am not backing away from any argument and still stand by what i said in my original post. (and when i was talking about sarcasm i meant my last post was sarcastic. i guess you still dont get it.....)
Anyway, the main point was that google is not becoming a monopoly - what exactly are they monopolizing? search engine industry? are you serious? goog was compared to microsoft in terms of monopoly. microsoft was a true monopoly since every pc had windows pre installed. how does goog compete with that? 95% of goog's revenue comes from ad's and droid is a fairly new system (beside all the apps/goodies google is working on). even at that, there are so many other os for cell phones out there. catch my drift, genius?
This is my final post directed towards you as you have more than shown how fucking retarded and uneducated you are not only about google as a company but towards technology as a whole.
First and foremost, ANDROID is the OS that google has created. DROID is a marketing term that verizon created that currently encompasses three Motorola phones (Droid1, Droid2 and Droid x) and one HTC phone (Incredible). There are going to be more phones released under the Droid line.
As an OS, Android has the capability of being run on multiple platforms. That is why multiple phone manufacturers can release phones with that OS. IN ADDITION, dev's have begun finding ways to put Android on iPhones as well.
Android has been around for quite some time now and after this year has seized the market and dominated apple. iOS is a bloated joke compared to what Android currently is and where android WILL be going. In terms of OS's for smart phones, there are only three worth a shit. Android, iOS and Windows. Windows OS is a joke.
Google does not make the apps for the OS. It is an open source OS that allows people to create and submit apps to it. Anyone can create anything and submit it. If you think Google has the time or the patience to release thousands of apps each day, you are dumber than I thought.
Microsoft was a monopoly during the 90s because they were truly the only tech company worth a shit. Google has the ability to become a monopoly because they have their hand in everything and buy every start up that is worth a shit. Their reach goes from phones, to operating systems, web browsers, search engines, e-mail, GPS, etc etc. Look at the aforementioned link and take a look at their corporate history. If it is tech related, they do it.
To say all google does is provide a search engine is a moronic and ignorant statement and a slap in the face to anyone that has pushed towards innovative technology.
Educate yourself before engaging in debates on topics you don't know shit about.
+1 for the pwnage.
OMG dude, you are just an ENCYCLOPEDIA (and I don't mean it in a good way). I will make sure to come to you when I buy my next a cell phone since apparently this is all you are good for. I didn't even finish reading your post (honestly), that's how useful it was to me.
Furthermore, you are just an idiot that takes **** out of context.
Until the next post, thanks, it's been fun...
While I think Google is still a tech company, I will disagree that it is only a search engine. Especially with Android, Google Docs, Chrome, etc.
have you seen chrome OS yet?
Does anyone know how much money Google puts into ventures like Google Street cars?
So, fucking what? OK Google has access to real time data searches how the fuck will that help them predict moves in the STOCK MARKET?
“There are many, many things that Google could do, that we chose not to do.” “One day we had a conversation where we figured we could just try to predict the stock market. And then we decided it was illegal. So we stopped doing that.”
Why is this illegal? Since when is trying to predict movements in the market illegal(black box)? Google should stick to search engines/mobil apps/ maps/ tech and get the fuck out of the market because based on that stupid fucking comment i'm debating if this company is just a giant ponzi scheme.
Once again, google is not in the business of mobile apps. Their mobile OS, Android, is open source. This means devs can create and submit their own apps to the android market. Google does not make the apps in the market.
I would love to hear why you think google is a ponzi scheme as well.
“There are many, many things that Google could do, that we chose not to do.”............ “One day we had a conversation where we figured we could just try to predict the stock market. And then we decided it was illegal. So we stopped doing that.” .......
"The investment team has grown to more than 30 people, up from six three years ago. "
So 30 people are in charged with managing 26.5 Billion. $26.5B/30 = ~$ 883,333,333.33 per person............
"Everybody knows that Google isn't going anywhere.".......:/
ask your self what can make googles price go down......
if google hints any new product/service where does the stock price go....
ANY THING google does will destroy something else and cause its demise...
all they have is ad sense ......
top excecs get pay raise...
~37% increase from july 10 in stock price.....
i guess i was wrong calling em a ponzi scheme i guess i should have said i question their recent stock price run up
just so many red flags going up when i hear about this stock
I think Eric meant mainly based on the amount of information they have to follow human traffic and patterns.
Anyone who has ever read up on the GOOG cookie knows how scary and powerful it is. Remember this is a company that the governments from various countries have already come to ask information to help them for various causes. Information as mentioned people willing give.
Now how much work you think it would be to analyze that information versus the stock market? Then take it a step further how hard is it to build algorithms that send images on ads or other ways to users using google's tools. Those thoughts drive people, at the end of the day the human psyche is what pushes the market, if you can direct and detect that you will be able to do some serious damage.
Personally I am with Eric, GOOG best not be doing anything like that. Or the govt needs to stand in and ask them to hand over their hard drives.
@CaptK - Yeah man, I think a Google VC fund would be a great idea. It might be frowned upon since the fund would be looking for investment ideas that would compete with Google. Maybe if the VC firm avoided internet tech or something like that. Either way I think it would be a good branch off.
Also, whoever mentioned Google competing with Bloomberg/Reuters, that is a great idea also. I could see something economically viable coming from them. Google Finance is a solid platform, maybe acquire FinViz and build off from there.
@Anthony - You're not the only one that thinks it's a good idea, haha.
http://www.google.com/ventures/
Haha, great find!
Haha, great find!
Tesla’s investors include Google, founders Sergey Brin and Larry Page
Google would invest 37.5 percent of the initial funds needed for the first stage of the AWC (Atlantic Wind Connection) transmission project. Google promises the investment will help in furthering the much-needed and very opposed development of offshore wind farms
A couple examples...
Google has had a VC/PE arm for a while. It's all apart of their do no evil theme.
The guys at Facebook are smarter than the Google guys. The web will be an internal web in the next few years. I'd be short of Google and I doubt they will be dominating the world anytime soon.
hmm not to get off topic but do you think Ren Tech, De Shaw and Citatedel programmers/quants smarter than google/facebook?
If you think facebook has anyone innovative working for them you are mistaken. Facebook is not a reliable or trustworthy company either.
I can't see Google doing a real prop trading firm simply because the culture of Google seems so anti-corporate bureaucracy and the type-A, money vs. social welfare notion of prop trading seems too conflicting. I mean focus too much on prop, they lose the unique Google thing that they have going on right now, the opposite won't attract enough talent (because of pay and respect in the firm). I feel this is like the Apple without Jobs type thing where they focused a lot on the bottom line rather than innovation. While it works great for some companies, a culture built around this would create a lot of problems
Their whole "do no evil" thing kinda runs contrary to what many people think of trading as, that is moving money around with no societal benefit. While this isn't true, it would weigh on their entry into a for-profit trading arm rather than simply a hedging one. I feel that Google could easily enter VC or even PE (if it buys the right companies). But in all honesty it seems to be trying to do a Yahoo! type expansion, but into even more unrelated fields.
google already hired away JP's mid to term muni guys in jan... they are building out a desk as we speak. same as most firms after their core business fx trading is next largest money maker
Sounds like a reverse Enron to me
also this is a large holding for hedge funds what happens when shit hits the fan and they all dump?
from Huffington Post Google Gets US Approval to Buy and Sell Energy
..............................................................................................................................................why would a tech company want to trade energy? >>> "We made this filing so we can have more flexibility in procuring power for Google's own operations, including our data centers," but they won't say how much >>>> "Data centers are big consumers of energy and Google operates several large facilities around the world -- /////it hasn't disclosed exactly how many////. That makes ensuring a steady supply of affordable energy critical to running its business."
Now, why wouldn't Google disclose how many it has?
"Google didn't respond to a question about that Thursday. Fenwick told the Journal last month that the company has "no plans" to become an energy trader or to sell energy services, but she also acknowledged that the company was "not sure" how it planned to proceed."
So it gets permit to trade energy just for fun??!?!?
Get Real. one fuck up the stock gets cut in half...or it revealed it has been using "theoretical" accounting standards
someone said the E word so I will add something..
what other company started in a sector then wanted to take over the world?
build new markets in things that no one else did before?
live in the grey of right/wrong
ENRON
Dear Google,
Please do us all a favor and go away.
PS: Fcuk You.
this is so fucking ignorant it is absurd.
Somehow Sergi/Schmidt/Page do not remind me of Lay/Skilling/Morgan
Also GOOG does not aim to fire its employees, and get them to run each other over. Different cultures.
Big fan of Google's business model. Much rather they'd take over than Microsoft or Apple.
P.S. all you 'just a search engine' guys are pillocks. I use Gmail, Google Maps, Chrome, the search engine and an HTC Desire (Android) phone every single day of my life. Not to mention that they revolutionized the advertising business model. This isn't to mention Google TV, which I'll be jumping onto as soon as it goes international.
but how much revenue does that shit generate for them?
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