TheStreet.com media critic Marek Fuchs writes Friday that the business media let Google off the hook by ignoring how cost-cutting improved its profits and instead implied that it was recession-proof.
Fuchs writes, “But part of weathering economic uncertainty — especially for a company, such as Google, never known to be overly concerned with costs — is to rein costs in. By not making this clear, articles such as Reuters’ failed to inform savvy investors.
“Time got even more breathless with its headline and lead, and, incredibly, failed to even mention Google’s cost controls, which helped its bottom line to such a degree: ‘Behold! The Recession-Proof Google: Hail Google!.’
“If you can find a single mention of cost cuts, The Business Press Maven will give you a shiny nickel.
“By contrast, check out the clarity of this article by Yi-Wyn Yen in Fortune. Instead of a simple celebration, in a vague way, of a Google accomplishment, the cost issue fittingly makes the headline: ‘Google gets frugal and profits soar.'”
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