Google And Lack Of Clicks Add To Recession Fears

There doesn’t seem to be any good economic news lately including a new report about Google and shrinking revenues. It seems that in a recent survey the search giant has suffered a reduction of about 7.5% in the number of clicks people are making on Google Ads. Because of this, Google is suffering a dip in their stock pricing which is down under $450 a share. According to the article:

Google’s stock price sank Tuesday in the wake of a report hinting that boom times may be over for the Internet darling’s money-making online advertising.

The number of click ads in January was essentially the same as it was in the same month a year earlier, and dipped seven percent from December, a month known for major holiday shopping, according to industry-tracker comScore.

Google’s stock price dipped below 448 dollars per share on Tuesday but was 462.55 dollars in after-hours trading at 23h00 GMT, representing a five percent drop for the day.

Investors evidently fear the comScore figures signal an end to Google’s years of exponential revenue growth.

“The difficulty is that Google is being measured by high growth year over year that has been holding the stock price up,” said analyst Rob Enderle of Enderle Group in Silicon Valley.

It should be interesting to see how the next few months turn out and if Google can maintain their current advertising revenues.

Full article is here.

Comments welcome.

[tags]google, clicks, advertisement, reduced, lower,  [/tags]