These companies have money thrown at them. And that's good, but it's also dangerous. It's good because it allows them to do big things, and it is dangerous because companies who have too much money don't have the market discipline of learning to operate with the money that they bring in as part of their business... and developing a pattern or focusing that that discipline brings.
A question that often comes up at times of strategic transformation is, should you pursue a highly focused approach, betting everything on one strategic goal, or should you hedge?... Mark TWain hit it on the head when he said, 'Put all of your eggs in one basket and WATCH THAT BASKET.'
Market share is gained and lost at times of technology breaks. This is the mother of all technology breaks...So the opportunity to try and bet on the horse that's going to get ahead is very, very tempting. At the same time, the ability to discriminate between one choice and another choice in this very noisy investment environment is becoming very difficult.