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
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)
camera-icon View 2 more images

(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.