Thursday, July 17, 2008

Google: Jerks or Fumblers?

Google stock is down today in after hours trading. Personally, I'd say it's because they're jerks (see below). But no, it's just that their second-quarter earnings that fell below analysts' expectations.

Why are Google heads jerks?

On Day Care, Google Makes a Rare Fumble
"Parents who had been paying $1,425 a month for infant care would see their costs rise to nearly $2,500 — well above the market rate. For parents with toddlers and preschoolers, who were charged less, the price increases were equally eye-popping. Under the new plan, parents with two kids in Google day care would most likely see their annual day care bill grow to more than $57,000 from around $33,000."
It's essentially a ridiculous tale where Google kept one-upping its day care facilities, and before it knew it, they had an over-the-top program that it was subsidizing to the tune of $37K per child per year. The price increase served to fix their other problem, too: the ridiculously long wait list.
"Google has also started charging people several hundred dollars to stay on the waiting list; as a result the list has dropped to around 300 parents. By next fall, Google plans to open new facilities with another 300 places. See? No more waiting list."
Just to drive the point home, Google co-founder Sergey Brin was reported to have said "he had no sympathy for the parents, and that he was tired of “Googlers” who felt entitled to perks like 'bottled water and M&Ms.'"

Since when has day care been equatable to a packet of "free" M&Ms?