domenica 18 ottobre 2009

Google: Worst behind us

In the past few weeks, mostly of the financial medias have communicate that the crisis is passing over and the companies are facing a positive phases thanks to the fact that the market is recovering and giving positive messages to the investors. During this period most of the companies traded on the stock exchange are publishing their third-quarter financial results, therefore it is possible to distinguish which companies have adopted the right strategy in order to overtake the crisis and others that have failed. Google is always been considered a crown jewelry company on the stock market: a healthy company with a strong financial statement. It was created just to improve the world of research online but it has also found the way to make huge profit undertaking a unique advertisement strategy. Two days ago Google published its astonishing financial result that was above every prediction.

The first article analyzed was taken from an Italian financial newspaper Il Sole 24 ore. It is presenting the news clearly with objectivity and awareness with a copious use of figures on how Google is performing on the market and key numbers published on the financial statement. This Italian newspaper is using a clear and unique methods of communicate the news: it is neither too technical nor too simple; it has a good mix of specific analysis and easy explanation.It always has sources from reliable and well know analysts and important companies’ executive: in this article for example is using the CEO quotes to support their point of view with a reliable source.

The Financial Times article is stating the news with a deep explanation of facts and figures. It is giving facts and figures in detail in order to give to the readers all the instruments to have a personal opinion at the end of the lecture. All the news facts are described clearly analyzing the different reasons of this kind of result such as “the amount advertisers pay each time a user clicks on their ads rose 5 per cent compared with the second quarter of this year, though the figure was still 6 per cent lower than a year before” and “The decline in the dollar since the end of June contributed to the rebound from the preceding quarter, since it raised the value of the 53 per cent of Google’s revenues that are earned outside the US”

The Business week is structuring and stating the news in a completely different way. It divides the article in four parts: the first one broadly explains the actual news and the other three focus on the key aspects of Google financial results (A revival for online AD spending; Expansion could curb margins; and Open to strategic acquisition). Comparing the Business week with the other articles, it is noticeable that is using a different approach in the way of explaining news; it takes in consideration the industry overall and specific analysis in order to judge Google performance. This kind of method facilitates the readers to create their own well-informed point of view on the news and on the market.

For some industry the crisis is over and are ready to invest again on innovation, expansion and hiring. It is noticeable that companies recovering from the crisis are just a few and caught my attention that all of them are those companies that have always based their revenues on tangible business and real economy avoiding conflicts with structured finance.It is my opinion that the finance world should learn from these healthy companies that add value to the economy and understand that maybe the period of high leverage and risks is over and it is time to “come back to basics”.


Il Sole 24 Ore:

http://www.ilsole24ore.com/art/SoleOnLine4/Finanza%20e%20Mercati/2009/10/google-trimestre-eric_schmidt.shtml?uuid=b63f0fdc-ba1f-11de-8daa-d0ad6a308883&DocRulesView=Libero

Financial Times:

http://www.ft.com/cms/s/0/17bc7acc-b9c8-11de-a747-00144feab49a.html?nclick_check=1

The Business Week:

http://www.businessweek.com/technology/content/oct2009/tc20091015_635656.htm


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