Enormous R&D expenditure can only lead to big long term profits. . . only Facebook or a break-up could be a blot on the horizon
Does it really care though? It has a vast infrastructure that’s getting larger – last year it spent more on servers than the rest of the world put together. That makes it almost unassailable – apart from the neat Artificial Intelligence open source trick that Facebook played on it in Jan 15.
Here’s why Google probably doesn’t need to care about shareholders:
It has more revenue irons in the fire than most corporates – these are all staggered and well planned to provide long term revenues;
Google Android Auto – putting android into cars would allow Google to show AdWords positioned via GPS. For example, if you were to drive into a electrical store car park Google would start to show ads for television.
Google Driverless Cars – exactly the same principle, but as the car is driverless, ads can be shown all the time – a mobile version of Minority Report.
Google Project Loon – providing wireless internet access to parts of the world that wouldn’t usually get it – thus growing the advertising market.