Google Shareholders Praise Management

Anthony Cruz, Amnesty International's Corporate Action Network Coordinator for California, stands in front of the Google headquarters in Mountain View, Calif., Thursday, May 11, 2006. Cruz spoke Thursday about Google's recent decision to actively censor it's search engine in China during Google's Annual shareholder's meeting. (AP Photo/Tony Avelar) (Tony Avelar - AP)

Brin said a split isn't planned because Google wants prospective investors to be highly motivated to conduct a through financial analysis of the company before buying. "We would rather not have shareholders who say, `Look, it's $20, it's cheap, so I'll buy it,'" Brin said.

Google CEO Eric Schmidt assured shareholders that Google is working diligently to develop even more products to build upon the company's success story, which included a $592 million profit on revenue of $2.25 billion during the first three months of this year.

"We have lots more stuff coming," Schmidt said. "The rate of innovation and impact of Google is just beginning."

Toward the end of the meeting, Schmidt reminded investors that Google eventually won't be able to deliver the high level of the earnings growth that enabled the stock to more quadruple from its August 2004 initial public offering price of $85. Google's earnings have increased by at least 60 percent in every quarter since the IPO.

"It's safe to say, over time, that our growth rates will slow," Schmidt said. "It's the law of diminishing returns. It's real difficult to know when this will occur."

A similar cautionary remark by Google's chief financial officer triggered a sharp slide in the company's stock price in late February.

While shareholders flattered them Thursday, Google executives complimented Apple Computer Inc., which, like Google, is one of Microsoft Corp.'s biggest rivals.

"I think we have a lot of shared values and shared principles with Apple," Brin said.

Schmidt went even further, calling Apple "one of the great innovators. They are amazingly impressive."