The senior leadership of public companies have two primary responsibilities. The first is obvious: to run the business as best they can for the benefit of shareholders, employees and other stakeholders. The second obligation is not often discussed openly: to manage the company's relationship with the Street. I do not believe there is any question that Google (Nasdaq:GOOG) succeeds on the first metric, but this second quarter puts the second metric into question.
Fortunately for shareholders, though, running the business is vastly more important in the long run. Companies may court unwanted volatility and undervaluation by not sufficiently managing the Street, but it is ultimately the stone cold fundamentals that matter and Google has little to fear there.
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