Google: Weathering the Storm?

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July 21, 2008
Insider Newsletter A weekly summary of the best in BusinessWeek and BusinessWeek.com

NEWS  THIS WEEK'S TOP STORY Google: Weathering the Storm? The search giant's second-quarter results disappointed investors, but the company believes it is shrugging off the broader malaise

Editor's Memo Isn't there anything you can count on anymore? Anheuser-Busch is being taken over by Belgium's InBev, mortgage outfits Fannie Mae and Freddie Mac are getting bailed out by the Fed, and mighty Google missed its earnings estimate. Yes, Google's July 17 earnings report disappointed investors and sent its shares tumbling. But BusinessWeek's Rob Hof explains why the search giant is better positioned than most companies to weather a stormy economy. One of BusinessWeek.com's most talked-about features this week was The Frozen Economy by columnist Shoshana Zuboff, a former Harvard Business School professor, who takes the pulse of the economy from a Maine diner. Even General Electric's Jeffrey Immelt is on the hot seat these days in the face of a falling share price. Our magazine piece explains what Immelt is doing to keep his job. In our featured video, we look at how rising oil prices are leading to a resurgence in bicycle sales and learn about one of the more innovative two-wheel offerings out there. General Motors may be cutting its dividend, but don't despair. We have a slide show on 15 companies with dividends that yield 5% or more and carry the highest recommendations from Standard & Poor's analysts. Maybe there are some things you can count on after all. -- Monica Gagnier

FROM THIS WEEK'S ISSUE OF BUSINESSWEEK GE: The Heat on Immelt The pressure to lift the share price is building. But CEO Jeff Immelt's options are limited The Future of Fannie and Freddie Colossal and enfeebled, the two mortgage giants are now part of the problem. The case for an extreme makeover DEALS Anheuser-Busch's Troubled Brew After merging with Belgium's InBev, Anheuser-Busch faces a tough CEO and a mountain of debt   FROM BW.COM'S TECHNOLOGY CHANNEL A Stroll Through the iPhone App Store Hundreds of non-Apple programs are available already, and the party has just begun BOOKS A Space Program for Technology A Silicon Valley vet argues that the U.S. needs a national strategy to regain its lead in crucial industries HARVARD BUSINESS ONLINE • From Harvard Business Blogging: A New Approach to Exec Recruiting Yes, we tried the traditional approaches when looking for a CEO for Adaptive Path. But we realized that social networking was a better way to go   FROM BW.COM'S SMALLBIZ CHANNEL How to Find the Right VC for Your Company It's critical for entrepreneurs, when targeting venture capital firms, to narrow their search based on key criteria HEADHUNTERS CONFIDENTIAL How to Select an Executive Search Firm Conducting an search firm "shootout" is critical to realizing a substantial return on investmens in management leadership   FROM BW.COM'S ASIA & EUROPE CHANNELS INTERNET A Crackdown on India's Cybercafés India's cybercafés could be headed for extinction as a nationwide clampdown in the name of anti-terrorism threatens their existence PRIVATE EQUITY China's Private Equity Boom While U.S. private equity investment is expected to remain flat in 2008, China should register 30%-plus growth for the next three years Nokia Defies Gravity BW's Europe Insight blog explains how Nokia increased sales, shipments, and operating margins in the second quarter, despite flat growth in Europe   FROM BW.COM'S LIFESTYLE CHANNEL FARNBOROUGH AIR SHOW 2008 The Real Action Is in Private Jets Pricey fuel be damned. It's full speed ahead on orders for $3 million-plus business aircraft—often from Asia, Russia, or the Middle East NEWS & FEATURES • From Sports Car Market Maserati's Hot Mistral The 1966 Maserati Mistral 4000 Spyder was the last of the classic 6-cylinder Maseratis   FROM BW.COM'S INNOVATION & DESIGN CHANNEL IDEA AWARDS 2008 IDEA Design Trend: Elegance and Simplicity Many of this year's top designs render complex objects more usable—or make humble things more intelligent NEWS & FEATURES Small Cars: A Bright Spot for Automakers Sales of small cars have surged as gas has risen. That's good news for carmakers, but there's a problem: They don't have enough of them INNOVATIONS A Solar-Powered Night-Light for the Poor A Solar-Powered Night-Light for the Poor   FROM BW.COM'S INVESTING CHANNEL ANNUAL RETIREMENT GUIDE Ruined by 401(k) Predators Retirees with plump nest eggs can be targets for unscrupulous financial advisers who rake in hefty fees with promises of huge returns FAIR VALUE Revenge of the Stockbroker Amid the ruin, the profit produced by high-net-worth handlers has never been so coveted  BW MALL   SPONSORED LINKS PROVE The Business Value Of Your IT Portfolio  Forrester Evaluates Four Methods Used To Measure The Business Value Of IT. Register For Free Report. Learn Financial Planning On Your Own Schedule  Enhance Your Resume, Change Careers, Make Your Money Work For You-Learn Financial Planning Online. ExxonMobil  Taking on the world's toughest energy challenges. Helping Others Excel–Become a High Impact Coach  Executive and organizational coaches help others reach new heights–Contact Columbia University Today Secure Recruiting Platfrom  Complete Talent Platform, including Applicant Tracking, Onboarding and more, backed by AT&T Hosting. Buy a link now! This newsletter is a FREE service provided by BusinessWeek.com. To sign up for other newsletters, cancel delivery, change delivery options or change your e-mail address, please go to our Newsletter Preferences page. If you need other assistance, please contact Customer Service or contact: Wanda Cooper BusinessWeek Customer Rights Communications Data Services 1995 G Avenue Red Oak, IA 51566 Phone: 1-800-635-1200 View our corporate privacy policy. To learn more about how BusinessWeek.com applies this policy, you can contact our Marketing Department. Copyright 2008, by The McGraw-Hill Companies Inc. All rights reserved. Terms of Use | Privacy Notice

FEATURED SLIDE SHOWS > > Recession-Proof Jobs 15 Dividend Yield Stars   Advertisement   What's Your Problem? We all have workplace problems. Share with us, and your fellow readers, the hurdles you've faced—and how you've tried to clear them     IN YOUR FACE: Wal-Mart Gets a Facelift Reader Bryan Writes: "I really question the benefits of Wal-Mart's substantial investment if it is not accompanied by more substantial and profound changes in the brand's offering to its consumers." Read the story and tell us what you think. >   Featured Blog Beijing authorities are banning dog meat during next month's Games. While I am not a fan of eating dogs, I think that Beijing has more important things they should be focusing on Dexter Roberts Other BusinessWeek Blogs The Auto Beat Globespotting Blogspotting Brand New Day Byte of the Apple Deal Flow Economics Unbound Eye on Asia Fine On Media Games, Inc. Getting In Green Business Hot Property Investing Insights Management IQ The New Entrepreneur NEXT: Innovation Tools & Trends NussbaumOnDesign The Oil & the Glory Recession in America The Tech Beat What's Your Story Idea? Working Parents READ MORE > ADVERTISEMENT Generate Serious Income in Turbulent Markets In today's market, there's more to trading covered calls than just buying a stock and selling a call. With a complimentary 3 month subscription to Bernie Schaeffer's "Covered Call Plus", you'll learn how to maximize income without limiting your upside while still reducing downside exposure.   FEATURED VIDEO Bringing Bicycles Back David Webster of IDEO talks about how the innovation firm used product, retail, and strategy design to help parts supplier Shimano help bike manufacturers attract a new audience of riders   Advertisement   FEATURED COLUMN Welcome to the Frozen Economy Not since the Depression have financial difficulties so immobilized spending and credit. Listen to the talk at a diner in Maine