Monday, May 22, 2006

The Cool Kid factor- Why Google's Stock Price Stays High


Don Dodge, a blogging Microsoftie... (http://dondodge.typepad.com/the_next_big_thing/)

Wrote an interesting blog on how Google doesn't actually tell you how it works. (click on this entries title to read it).

He notes that even though no one knows how it works, the stock price continues to be bid up.

How dare these upstarts at Google ignore the financial worlds demands for more information on how things work! Damn them I say... Damn them..

But buy some more of their stock.

It's the cool kid thing. None of us know it in school (even though it's obvious as we grow older and wiser) but the cool kids are the ones who just don't give a frak about being cool. Zen at work. The less you care about being cool, the cooler you are. Sociology 101 stuff, but it applies here as well.

The reason the analysts are so enamored with Google, keep buying their stock and bidding up the price is that Google just flat out doesn't care what the analysts think, they're going to do what they consider to be the right thing and the hell with what anyone, including Wall Street, says.

That's why they don't tell anyone how it works. They don't care if you don't buy their stock and that is why you so want to buy their stock. Cool Kid Syndrome at it's best.

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An excellent read from an ex-evangelical.

  As you know, I once was an evangelical megachurch pastor and my pastoral career stretched over many years. Eventually, I could no longer t...