Google's business model

The price of Google stock is now more than $400. Its market value exceeds that of Cisco. Many people are speaking the "B" word (bubble) again.

It is impossible to ascertain what is the "true" value of Google shares. But one thing is certain. Google is no dotcom bubble.

If I would describe Google's business model, I would say it is the "Yellowpage" for the web, or directory of the web. Like Yellowpage, Google is free to everyone. It is an ad-supported business model. As the web keeps expanding, a searchable directory is of the number 1 importance. Google has the best web search engine, and that is why majority of people use it for get information from the web.

Google is not just "yellowpage on the net". It is more dynamic, more flexible, and more expansive than that. It creates a self growing user community, and is gradually becoming the gateway to the internet. If you believe the Internet will become the primary medium for content delivery, then you can appreciate the enormous potential for google.