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Google Stock Down After comScore Click Report: A Roundup
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Written By Sepideh Saremi | February 27, 2008 | Share This
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When a report released by comScore revealed that Google’s paid search clicks were down 7% in January compared to the previous month, the search giant’s stock dropped more than 4% yesterday. Google has been working on reducing click fraud and accidental clicks, but the market’s clearly a little jumpy about anything affecting revenue in light of a possible recession, so it’s actually not very surprising that this happened. Though it appears the stock is recovering today, here’s a quick roundup of some of the buzz on what happened and the State of Google:
- Search Engine Round Table quotes “James of comScore”: “Google, is by design, committing to the user and taking a hit on ad revenue - so they are gaining massive share by doing this in the short term.
- TechCrunch has an excellent post noting that though analysts point to an economic downturn also hitting GOOG, this is probably off because Yahoo actually made gains. A more likely explanation is Google’s more aggressively taking on click fraud. Also: comScore reports are historically inconsistent with actual revenue. See also: this comprehensive article at MarketWatch.
- WatchMojo.com looks beyond this report to note that Google may have bigger problems looming: “The main specter overshadowing Google stock is not the US recession, but the fact that display and video advertising are growing faster than search ads and Google has yet to really demonstrate any ability to generate meaningful revenues from that market, let alone own it.”
Topics: Google, Investment, M&A |
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[…] Google Stock Down After comScore Click Report: A Roundup, Searchviews […]
It is going to be interesting to see what kind of statistical hocuspocus comScam cooks up to explain the disparity between the reports generated from their ‘researchware’ and google’s 4/17/08 earnings report.