The New York Post reports that Google is considering an "extensive alliance" with Napster, including a possible acquisition. In lieu of building its own online music store, the search giant has been pushing to align with the struggling music subscription service. While the rumor that Google wants to move into digital music has been floating around for some time, the company would only say,"We have nothing to announce at this time." However, in a recent research report, a Bear Sterns analyst said he believes Google is in the midst of creating an iTunes competitor, which he said would be announced …

Google learned the hard way yesterday afternoon that you'd better at least meet the Street when it comes to your earnings report. While revenue of $1.92 billion were in-line with Wall Street estimates, the company's actual earnings per share fell 20 cents short, sending its stock plummeting 12 percent, or more than $50 per share in after hours trading. This shows how the company's enormous valuation is predicated on assumptions that it will continue to grow very rapidly--in Internet advertising as well as other media services. However, 80 percent year-over-year growth just isn't good enough, compared to the third …