I know that view is popular, but it seems so short-sighted. Most companies can increase profit whenever they want, but driving out innovators and abusing goodwill never works out long-term. Look at IBM, Oracle, Intel, Boeing, US Steel, GE, Commodore, Quiznos, etc. I feel like the Google's stock holders are just getting the wool pulled over their eyes. An increase in profit often means a cannibalization of value.
I'm mostly wondering why shareholders go along with it or even pay on premium on shares making a lot of money now that may be comparatively worthless in 20 years. Do they really believe this is sustainable? Do they expect Google to just start issuing massive dividends? Are they just hoping for a greater fool?
