Google's happy days are here again

From CNET News.com: Google is ready to once again hit the gas, with plans to invest in people, products, and companies over the next several months now that it feels much more confident about its business and the economy. When the last recession hit in 2001, Google was still a small growing company, but a year ago the crumbling economy spooked executives into caution mode as they tried to anticipate just how bad things might get.

Now they know. "The worst of the recession is clearly behind us," Schmidt said following Google's announcement of third-quarter earnings that were stronger than financial analysts had expected. "Because of what we've seen we can be optimistic about the future."

That means Google is about to go on an investment binge; although, it probably would object to the term "binge." The most likely scenario is that Google plans to buy a few more companies than it has in the past year, open the hiring floodgates to the types of engineers and salespeople that fit within Google culture, and make sure it has the right technology assets to continue to dominate the search landscape.

That's not good news for anybody who competes with Google. Yahoo reports earnings Tuesday, and Microsoft next Friday, so it's hard to know if they are feeling as optimistic about the upcoming quarter. But Yahoo has been focused more on big strategic questions and product rollouts during the past quarter, and Microsoft CEO Steve Ballmer told CNET earlier this month: "I don't think things are getting worse, but I don't think they're getting a lot better yet either" as Microsoft prepares to launch Windows 7.

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