I just read a commentary 
on CBS Marketwatch about Google's
IPO quiet period. First, Google shook up the investment world by going
public through an auction, effectively shutting out the big
institutions from their usual special IPO deals. Now, add another twist to the mix of Google's public life -- they are
not going to provide any financial guidance. They will report their
earnings and everything else that is required, but they are not going
to speculate publicly about their future financial outlook.
The public auction thing was certainly an attention getter. It was
rebellious and independent, fitting the Google profile very well. The
guidance decision, however, is flat out brilliant. This is a huge step
away from conventional wisdom. I always assumed that providing
guidance was a legal requirement, not an option. Who knew!?
Refusing to provide future guidance allows Google to operate without
much of the baggage that most high-profile public companies carry
around. It helps them remain focused on the long term. Stock prices are
all about expectations. By not creating them, Google is left to make
sound management decisions without having to worry about the
consequences of being poor fortune tellers. I love it.