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Fear, panic, and mayhem gripped Google yesterday as employees saw their fortunes vanish before their eyes. Major institutional investors dumped Google’s stock as the honeymoon wore off and they started seeing the company for what it is. One investor told me that many fear, in the back of their minds, what Gates and Ballmer have pounded into them – “Google is a one trick pony”. Institutional investors invest billions into companies hoping to find the next Microsoft, Apple, IBM, Cisco, and even Google.
Some junior and mid-level employees told me that morale “is at an all time low”, the old-time top brass seemed completely worn out, and only the delusional new hires seemed upbeat – who incidentally hoped to be rich like Sergey and Larry. Which brings me to why fear is spreading deep. Many gayglers (an internal term used to refer to Google employees – not to be confused with Googlers – a term used to refer to users of the search engine) are just down-to-earth, good, hard working folks. They want what everybody wants. Most of them came to Google thinking they were going to change the world and make some money doing it. Why not? That is the American way.
Unfortunately, things have not worked out that way for many, most of them accepted lower pay in exchange for stock options. Last year, depending on whom you asked, it was estimated that 85 – 95% of those stock options were underwater. They were subsequently repriced for 75% of the gayglers however the vesting period was extended; in the process, investors ended up getting screwed big time and that is when things started to sour.
Many gayglers are worn out and they want out. They have lost confidence in the company, its values, the management, and its products. Most gayglers work long hours and on weekends on new products that debut only to be killed shortly after launch. Bill Gates joked that “Google products have their best day when they launch”; after that they are dead. The latest joke is that they are building an iPad copycat and calling copying innovation.
Faced with the prospect of low wages, long hours, and the stock in the toilet, many gayglers are looking for work elsewhere and are finding out that “smart” label is hurting them. Gayglers are no different than an employee at any other company but they are told that they are smart for accepting the low wage and working long hours. In fact, Google routinely boasts that they hire smart employees as if other companies are hiring dumb employees. The so called “smart” employees are discovering that they are not that smart as they seek employment outside Google. They have become accustomed to working like McDonald’s employees at Google doing one task day-in, day-out. When they go out into the real world, they don’t have the skills and don’t make a good fit for many companies that require a well-rounded person - especially in the social media era where multi-tasking is a basic skill.
In the interim, institutional investors are seeing a pattern of one product flop after another and are fearing that Google might be what Gates said it was; after all, Microsoft shares have made them wealthy. It didn’t help when Apple’s Steve Jobs kicked out the Google CEO from the board, then they fought with China, and their support of all the dinosaurs, then support for Adobe to hit back at Apple and many other screw ups all make them uncool. Gayglers have reason to panic.
Channels: Bill Gates, gayglers, google, Larry Page, sergey brin
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What's with all the anti-Google sentiment coming from Webguild? Have you sold Google stock short????? (No, I don't work for Google, nor do I have shares in Google. If you think that Google is on its knees then you really must have drunk some very odd cool-aid from some big anti-Google person/company).
Comment by Tess Young — May 5, 2010 @ 10:16 PM
I can't see them extending successfully into anything beyond search.
Comment by Yones Dikan — May 5, 2010 @ 10:34 PM
Just like Microsoft and other public companies, Google has been issuing RSU (Restricted Stock Units) which are outright share grants that have a vesting schedule associated with it. So, the shareholders of such companies may not see any growth, but the employees will sure get compensated. Microsoft stock was around $25 in 2000 and has been recently trading around $29/share. Yet, the Microsoft employees have been handsomely rewarded through RSU grants. Google has taken the same approach.
Comment by Anonymous — May 5, 2010 @ 9:29 PM
I'm starting to associate your email updates with two things, Social Media, and everpresent Google bashing. Most stocks went down a couple % points yesterday and this was only a 4% drop, hardly cause for panic. Not saying Google is the bees knees, but this bent is so obvious it's annoying.
Comment by Paul Horst — May 5, 2010 @ 9:49 PM
Great post. They are way overvalued.
Comment by John D — May 5, 2010 @ 10:33 PM
They are no different than any other company. They will not shine forever. However what is different here is that the employees thought this time things were different. Most of them are inexperienced, it is probably their first job, that is why they can pay so low.
Comment by Pathrk Jain — May 5, 2010 @ 10:39 PM
Down 5%? That's nothing. They IPO'd for $100/share, that's still a whopping gain for those from that time. Sounds like Google Bashing to me. Not that Google isn't a many-tentacled, eyed, and eared beast who seeks to know everything about everyone. I just don't see them crashing and burning any time soon.
Comment by Joey B — May 5, 2010 @ 10:50 PM
I went to a job interview at Google and I had to sign a non-disclosure agreement and my recruiter asked me not to post the questions on blogs. Any everyone I interviewed with was a moron. It is also like they wanted me to feel stupid to pay me a lower wage. I had 4 interviews by the time they called me for the 5th, I had found another job. Suddenly the tone changed. I went into the 5th interview and was told that it was the last interview. I did not like what I saw. Working like rats in cubicle from IKEA. I turned down the offer when they called. Another candidate who was not fortunate as I was ended up going to 8 interview with the same group of idiots. After all the job was not rocket science. It was simply to do site maintenance.
Comment by yellow piss — May 5, 2010 @ 10:53 PM
they just got lucky with search
Comment by lucky brite — May 5, 2010 @ 10:56 PM
WebGuild is the voice of the internet and we are echoing the voices that are being drown out. And no I am not short Google.
Comment by Daya Baran — May 5, 2010 @ 11:00 PM
"Google routinely boasts that they hire smart employees as if other companies are hiring dump [sic] employees."
Oh sweet irony!
Comment by @eddroid — May 5, 2010 @ 11:12 PM
As if often the case, many of these comments are either poorly-informed or disingenuous. To say that Google "just got lucky" at search begs the question, "what happened to the ones who didn't "get lucky"? Many were there ahead of Google, but ONLY Google got it right. That's not luck, that's insight, cleverness, and a lot of hard work. As for saying that Google is going down the tank because of a few self-serving and arrogant comments from competing CEOs, coupled with a bad day on Wall Street? I don't think so! I don't own any Google stock, but I don't plan on short-selling any either. I've been working around here for a long time, and trust me, newcomers, this was just another Day in the Valley.
Comment by ValleyVeteran — May 5, 2010 @ 11:37 PM
I totally agree with u. They hit the sweet spot.
Comment by tester — May 6, 2010 @ 12:33 AM
Oracle and many other tech stocks went down this week. While there could be trouble at Google, I think it should be evidenced with a share price slide over a 6 month period instead of 6 hours. In fact, every business like this is challenged to maintain the excitement and growth. To bring in new employees and keep them excited when share prices are growing at normal rates. You can't get rich on stock options with an established mature company. And hey – is there really a strong climate today to get rich quick. Seems like a lot of people are just happy to have jobs and stable income.
Comment by Mark Oliver — May 6, 2010 @ 1:22 AM
I don't know if any of you will find this interesting, but since John Doerr sits on the board of Google, perhaps you might. I wonder if John Doerr wished to suppress my company's rankings on Google if he would be able to do so, and what else he might be able to do if he had a mind to. http://www.amazonsellercommunity.com/forums/threa...
Comment by Roger Raffee — May 6, 2010 @ 4:49 AM
McDonald’s employees doing one task day-in, day-out and when they go out into the real world, they don’t have the skills and don’t make a good fit for many companies that require a well-rounded person – especially in the social media era where multi-tasking is a basic skill.
I think this is nonsence, especially as you are refering directly to the Gayglers, as if they cant work properly and effectively. And to make the post relative only to Gayglers it seems when they are 700 out of 20000 employers is targetting them in a biased and unfair way. Maybe you should re-evalute your comments Webguild or Intensedebate
Comment by Robert — March 23, 2011 @ 10:03 PM