The Googmic Index is still in the 42-43% area, which is virtually its early '06 level and basically right in the middle between a year low of 35% and a year high of 51%.
Over the last 3 months, while Google grew by a meager 5%, Microsoft jumped 25%. Mid August, I believed Microsoft was a reasonably priced stock with a strong potential ahead, and despite the recent rise I still believe it is.
About a year ago I mentioned that while Google managed to get itself loved by people, Microsoft had a long way to go there. It seems that things have changed and Google ever growing dominance on the web is now starting to have the same negative image effect as Microsoft's quasi monopoly in operating systems and office softwares had.
The very nature of the Zune project should also improve Microsoft image, though I today find it very hard to associate the Microsoft brand with such a product : it just seems very weird, a bit like putting the Nescafe brand on a pasta pack : it doesn't really fit ! I have big doubts on the success of the Zune, but the point here is just to mention that it will somehow contribute to improve the image of the Redmond giant.
As for Google, I stand by the same advise : it's an excellent long term bet and will definetly beat the market. The Googmic Index should gear toward 1 in the distant future, but I will not make any forecast as to when (don't think '07 is likely) ! Internet still is a fast growing environment, Google's technological prowess and R&D capabilities are remarkable, but its sheer size and dominance also make it vulnerable to numerous problems, both internal and external.
At one point in time, Google will very probably have to deal with the same issues Microsoft has faced : too much arrogance, formal and informal alliances of competitors teaming up to kill the beast, government actions to limit dominance, anti-trust lawsuit, etc.
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