Google’s Miss Shocks the Bulls: What’s Ailing the Search Giant?

NO .. BUSINESSES LIKE MINE ARE FINDING OUT THAT "CLICKS" IS A FRAUD AND CANCELLING. I SENT PROOF OF PHANTOM CLICKS COMING OUT OF INDIA AND BELARUS TO GOOGLE. THEY SIMPLY LIED AND DENIED IT. EVIL. I WILL NEVER DO BUSINESS WITH THEM.

Hey...they finally realized that those accidental clicks on the ad banners don't result in spending? The only time I click on an ad banner or even look at one, is by accident and even then, I click out immediately. To really understand the whole thing: how many times have you seen an ad banner, clicked on it, and actually shelled out money? I don't know a single person who has.

Let's see - global economic slowdown, people are spending less...companies actually want results from their google ads and google can only provide "click" data. I bet they have software to click on banners to artificially boost the numbers, but no software to artificially boost profits.

As a past advertiser on Google I can tell you they are not cost effective. As tech people are finding far less expensive advertising method, they will continue to lose traction. At one time they pretty much had the click thru model cornered but now it is far too expensive in comparison to other models

Google has peaked dont chase it any further , get out of it wait for it to drop . They never stay on top after 5-6 years of exposure

Steve's late-life advice to returned -CEO Larry: "Simply". Google has lots of products, but only a handful that make money or should be staffed.

You're all talking about what has already happened. Stock is all about futures, and the future of google based on their current model is weak. They're too diversified, others have cracked the part of their model that works, so their marketshare is getting cut up, and will continue to get cut up, especially if they stay so focused on competing with Apple instead of improving what it they started doing in the first place. Google-Greed. They are their own worst enemy.
I recommend a sell.

I would ask the question differently: What's wrong with the analysts? They obviously got it wrong, wouldn't be the first time. And as usual the traders blindly follow a bunch of 26 year old "analysts" who obviously have a deep understanding of everything, or no clue, depending on where you stand. .

I have an online retail business and my Adwords costs shot up 60% during the the Xmas season. Cost per click was up about 80% for the year compared to last year. I thought Goog revenues would explode. I wasn't sure about earnings because of all the spending. Unfortunately, Goog is the only game in town. Facebook is a joke. I would prefer to use Bing because my Organic ranking is much higher with them but the ROI is just not as good for my business. I'm very surprised. I was hoping to hedge my Adwords cost with GOOG stock. That didn't work so well.

In the next quarter alot of Company's will fall short. Why? The dollar is appreciating which is hurting the us international gross margins. plain and simple.

How can IBM be up 8.08 when it was 187 yesterday ?

"i think the run-up was an overreaction"... bravo, henry.

I think its very simple. The bloom is off the rose. The effectiveness of GOOG advertising is being questioned.

Hey Skippy,

Compare Apple stock to Google stock for last (2 and) 5 yrs. Apple up 400% Google up 40%.
Look at earnings per share as well. Google with Moto has got nowhere to go but down. Giving stuff away may make Google and Android popular, but as the newspapers found out, once the ad revenue dries up, you're toast!. Move to mobile ads is even lower revenue longer term and the growth is in mobile!

It could be because of all the AD filters on modern browsers.

I am fed up with them because of what they are doing with gmail. I tried to set up an account there and they want your soul to be able to do so. I am leaving Yahoo because they have taken to putting where I live on these blogs. I cannot find a way to opt out of that so that tells me they no longer care what their clients do. Sad as I have enjoyed so many things about blogging after reading a story here.

According to write ups the past few years, along with photo shoots of their work environment, they run the place like a country club with too many free bee's and more people than productivity. Now it's catching up to them.

Some of the ads on Yahoo that popup and take a lot of the screen, I just right click on the ad to open a new tab with the ad in it to get it out of the way. I don't look at the ad. I later just click on the 'x' on the browser tabs to close them all.

Sold google last week.

I use Google for free everyday. THAT's the problem with their business model.

Boy, I wish I could say I was disappointed that I only made 37 billion dollars.