The Alpha Geeks are chattering about the quiet closure of an important Google API. We got excited about Google a couple of years ago because they clearly understood the power of helping the world solve what we call The Binding Problem.
Today Google is under pressure to perform and in so doing is making some moves that suggest they are abandoning some small but critical elements behind their success. (We don’t want to be overly dramatic here but Yahoo! fell into the same trap somewhere along their path to the mainstream corporate world.)
We’re not saying that it’s all downhill for Google from here but this move, combined with a few others, suggests that the company may be in the midst of changing gears. Our guess is that any changes are not likely to increase the multiple for the stock so our conclusion would be to get cautious.
Google going corporate also creates some real opportunities for others to offer new software and services that do help us continue to solve The Binding Problem and make a great deal of money in the process.
While this is technical and a bit beyond the ken of your typical institutional investor, we think it matters.