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Investing in energy: More wasted money at Google

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Google (NASDAQ: GOOG) has lost money on it finance website, its maps, its image search, and does not appear to make money on YouTube. If investors have any valid criticism of the company it is that Google is in too many business which have limited or no potential return.

Add investing in a more efficient national energy program to that list. Google does manage energy consumption to keep the costs of its server farms down, but now the company wants to go way beyond that. According to The New York Times, "Google is now considering large investments in projects that generate electricity from renewable sources."

Perhaps the large search firm should look at the collapse of the solar and ethanol businesses. As the price of commodities moved up and oil prices moved down, ethanol stocks have been killed. As government underwriting of solar power has been cut back that industry has gone into a flat spin along with the public companies which have driven its expansion.

Google's stock is at $329 down from a 52-week high of over $747. Some of that is due to concerns about a slowing advertising market. Some of its is due to the money Google wastes. The company can take one of those concerns off the table.

Douglas A. McIntyre is an editor at 24/7 Wall St.

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Last updated: November 27, 2009: 11:43 AM

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