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Google Not Clicking with Investors

Share price continues slide as advertising views flatline in January

By Jim O'Neill,  Newser User

Posted Feb 27, 2008 7:12 AM CST
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(Newser) – Google, flying high in November when its stock hit a record $747.24, is falling back to Earth as investors worry that the slowing economy is discouraging web surfers from clicking on the search giant’s ads, reports the Wall Street Journal. A comScore report yesterday said Google’s January US click-throughs were flat compared to a year ago, a concern since most of Google’s revenue comes from its text-ad traffic.

“There are pretty strong signals now that the economic slowdown is having impact on consumers’ behavior online," said one analyst. Investors also worry that Google may have reached its market-share limit, constraining further growth. The company’s stock hit a nine-month low yesterday, falling 4.6% to close at $464.19. It’s down 38% since November.

A man demonstrates Google's Android software platform at the World Mobile Congress, in Barcelona, Spain, Tuesday, Feb. 12, 2008. The congress is expected to bring together more than 50,000 industry executives from some 1,300 companies. (AP Photo/Manu Fernandez)
A man demonstrates Google's Android software platform at the World Mobile Congress, in Barcelona, Spain, Tuesday, Feb. 12, 2008. The congress is expected to bring together more than 50,000 industry executives...   (Associated Press)
The reception desk is shown at Google's New York offices on Thursday, Jan. 31, 2008. Google Inc. says Microsoft Corp. could use its proposed $42 billion acquisition of Yahoo Inc. to gain illegal control over the Internet, underscoring the online search leader's queasiness about its two biggest rivals teaming up....
The reception desk is shown at Google's New York offices on Thursday, Jan. 31, 2008. Google Inc. says Microsoft Corp. could use its proposed $42 billion acquisition of Yahoo Inc. to gain illegal control...   (Associated Press)
A Google sign inside Google headquarters in Mountain View, Calif. is seen in this May 30, 2007 file photo. Google's share price has dropped dramatically.
A Google sign inside Google headquarters in Mountain View, Calif. is seen in this May 30, 2007 file photo. Google's share price has dropped dramatically.   (Associated Press)
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