Also, Pandora Media Inc (NYSE:P)’s smartphone compatibility means it can reach more people faster than Sirius can. Since its offering is free, Pandora Media Inc (NYSE:P) has created a near-essential app for most people, which makes the stock look better to investors than Sirius XM Radio Inc (NASDAQ:SIRI). When Pandora Media Inc (NYSE:P) reveals its earnings later this month, results should impress investors given the growth in users and profitability. That can yield some nice shareholder returns for a fraction of Google Inc (NASDAQ:GOOG) or Apple Inc. (NASDAQ:AAPL)’s stock price.
Next big thing?
Google Glass has all the potential to be the next big thing and to send Google Inc (NASDAQ:GOOG)’s stock even higher as people flock to buy the new hardware. It comes in with the high expectations that we expect from a company like Google, but will it have the same fate as satellite radio? When Google releases its first earnings report after a major product release, if that offering doesn’t blow people away the stock takes a hit — even if it’s a good product. This would be Google Inc (NASDAQ:GOOG)’s biggest venture into retail technology, as Glass would be sold in stores that sell eyeglasses as well as major technology retailers.
If Google Inc (NASDAQ:GOOG) can bring the $1,600 price tag down to more affordable levels (which will take time as production becomes more efficient), it can be a real winner for the company. At $96.7 billion in total assets, Google risks less than most other companies when trying to take the next step.
The next two earnings reports though will be crucial for the fate of the Glass, as any weakness in sales and production will have investors getting nervous. But Google Inc (NASDAQ:GOOG) has the room to bounce back in the long term should trouble arise, albeit at a cost to its so-far-happy shareholders.
Bottom line
I trust Google Inc (NASDAQ:GOOG) to put this new item through its paces before unleashing it for the masses, but I can’t help but feel nervous for the company over this. This is probably Google’s riskiest push in years, and it depends on thinking that there is a market for what is essentially a wearable computer, a market that may or may not exist.
Great companies have made catastrophic mistakes before and have been okay, like Microsoft Corporation (NASDAQ:MSFT) and its Zune, but few have been so closely watched and dissected as Google. A flop would hurt Google Inc (NASDAQ:GOOG) as much as a success would boost it.
The article Google Glass: A Bridge Too Far? originally appeared on Fool.com.
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