Shares of Google dipped as low as $348 today, down from a high of $747 last November. Investors have taken a bath — but so have employees. Google makes up for so-so salaries with generous grants of stock options and restricted shares — but those no longer look so generous. Henry Blodget, the disgraced yet insightful former stock analyst, says both restive groups will conspire to crush Google's profit margins. Shareholders will demand more accountability for Google's spending — expect further cutbacks in perks like Google's lavish cafes, in other words — and employees will demand more cash.

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