Wall Street has lots of stock indexes. Everyone knows the NASDAQ and Dow Jones Industrials, but there are hundreds of other indexes for almost every sector and capitalisation.
With that in mind, I offer the Google Dependency Index, which is composed of a list of public companies that essentially find themselves completely at the mercy of Google.
I put this list together mostly as an exercise to quantify just how important Google was to the direct financial performance of other public Internet companies and I have to say that after going through the exercise it has convinced me that Google A) is actually even more powerful than people perceive it to be B) there will inevitably be a backlash against this power.
I should note that this is not an exhaustive list because to a certain degree almost every public Internet company is dependent on Google to some extent, but this list contains examples of companies that arguably have the most significant exposure to Google.
So without further ado here is the Google Dependency Index >
Note: The first five are Direct Dependents (Companies that actually get cash from Google). The next five are Sub-Sector Indirect Dependents (Companies that depend on Google for traffic, but not direct revenues).
This post originally appeared at Bill Burnham’s blog and is reprinted here with his permission. This is not investment advice, just some observations about how damn powerful Google has really become. The thoughts and opinions on in this post are mine and mine alone and not affiliated in any way with Inductive Capital LP, San Andreas Capital LLC, or any other company I am involved with. Nothing written in this blog should be considered investment, tax, legal,financial or any other kind of advice. These writings, misinformed as they may be, are just my personal opinions.
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