The next hot internet stock: The Economist is bearish — but realistic — on Google’s chances in the coming years.
“Even more frightening (especially to those who remember Netscape’s fate in the browser wars), Microsoft smells blood. It is currently working on its own search algorithm, which it hopes to make public early next year, around the probable time of Google’s share listing. Historically, Microsoft has been good at letting others (Apple, Netscape, Real) pioneer a technology before taking over, exploiting its dominance in desktop operating systems.”
There’s no doubt that Google is under far more competitive pressure than ever before. It’s like sports — everyone loves you until you’re the undisputed champion, then everyone conspires to knock you off. The wolf pack is getting braver and braver. Taking on Google was once considered foolish, but now there are some legitimate challengers, Microsoft being one of them.