Over a million developers have joined DZone.

Google Giant Has Feet of Clay

DZone's Guide to

Google Giant Has Feet of Clay

· ·
Free Resource
Google’s stock dropped 7% this morning – down into the $450s – after comScore sprung the lever on the trapdoor under its feet and reported that US paid-click growth in January was flat year-over-year and down 7.5% sequentially.

Of course, Google derives most of its revenue from paid-clicks.

ComScore said Yahoo’s paid-clicks were up 15% and cut eight points off of Google’s market share.

The conclusion is that Google has hit the economy’s headwinds, raising doubts about how it, basically an advertising company, will fare in a slowdown and whether it can meet first-quarter expectations.

In the fourth quarter Google admitted to a drop in paid-clicks but attributed it to new widgetry meant to cut the number of accidental clicks.

Google stock, near $750 not that long ago, is down 30-odd percent since October and analysts are pulling in their price targets. UBS cut its number from $650 to $590 thismorning; the average is down around $40-$50 to about $700.


Opinions expressed by DZone contributors are their own.

{{ parent.title || parent.header.title}}

{{ parent.tldr }}

{{ parent.urlSource.name }}