The anxiety cropped up after Google reiterated a warning that seems fairly reasonable: It simply cannot sustain its incredible revenue growth rate. More specifically, it noted that top-line growth in the fourth quarter may not be on pace with that of the third. The statement, although made relatively low-key in a regulatory filing with the Securities and Exchange Commission, created quite a stir.
Of course, investors don't have much reason to fret at the moment. Google continues to innovate and leads in a variety of areas. Yahoo!
At the same time, Google's momentum may slow further as the competitive environment heats up. A recent United Press International story reported that rivals Yahoo! and Microsoft
Further, while sponsored search remains the killer Internet business model of today, things change quickly in cyberspace. Yahoo! seems to be gravitating toward original or exclusive content that leverages the increasing use of broadband in U.S. homes. Amazon
Rapid innovation remains one of the hallmarks of the Internet. Google has led the way, but its rivals are by no means standing still.
Fool contributor Brian Gorman is a freelance writer in Chicago. He does not own shares of any companies mentioned in this article.