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Google Shocker: Paid Click Hits Wall

Posted Feb 26, 2008 09:46am EST by Aaron Task in Internet, Recession

Google shares are getting hit early Tuesday after comScore's report on a startlingly big decline in paid click growth. Google's January paid click growth was flat on a year-over-year basis, down 7% from December and down 12% from the fourth quarter. UBS cut its earnings estimate and price target in response.

The comScore data provide further evidence that Google is not recession proof and it looks like somebody got wind of this report as GOOG shares were notably weak Monday in an up tape. This decline probably represents an opportunity for believers in Google's long-term story but the short-term pain isn't likely over yet. 

94 Comments

Scott A
Scott A - Tuesday February 26, 2008 09:53AM EST

and the short term pain is substantial.....Im hungry.

Paul
Paul - Tuesday February 26, 2008 09:56AM EST

this is going to $360 by the end of March, then it's a BUY!

Dave
Dave - Tuesday February 26, 2008 09:59AM EST

The guy on the left was a real hand waving talking bonehead...

Henny K
Henny K - Tuesday February 26, 2008 10:04AM EST

GOOG is finished Shorting market is the way to go

B
B - Tuesday February 26, 2008 10:07AM EST

time to move money around

RichR
RichR - Tuesday February 26, 2008 10:08AM EST

Goog will rule the world one day. Be patient!

Richard
Richard - Tuesday February 26, 2008 10:15AM EST

Everybody keep selling! This way it will be ceaper for me to buy back in!

Hello
Hello - Tuesday February 26, 2008 10:16AM EST

Mark this post: GOOG will go down to $50/shr. The morons and talking heads have forgotten the .COM era of late 90's. A company with one single source of revenue of on line advertising has no business having a market cap as Google does (which is more than that of IBM)! LOL

Yahoo! Finance User
Yahoo! Finance User - Tuesday February 26, 2008 10:20AM EST

Company still makes cash

KYU
KYU - Tuesday February 26, 2008 10:22AM EST

Get out of GOOG and long YHOO.

Paul
Paul - Tuesday February 26, 2008 10:22AM EST

Google got greedy just like many other start ups that have not lived through the hardtimes.

Matthew
Matthew - Tuesday February 26, 2008 10:24AM EST

Interesting. So how much is the Paid Click issue impacting Yahoo, etc. Same damage, or not as much because Google's stock is overinflated?

Yahoo! Finance User
Yahoo! Finance User - Tuesday February 26, 2008 10:24AM EST

goog is way overpriced for a media company and that's what it is. shorts are going to do well on this one.

Kelly
Kelly - Tuesday February 26, 2008 10:24AM EST

Google is one of best positioned companies for next 10-20 years! That is a smart comment. Is it impossible for someone to come out with a much better search tomorrow - and for users to make one different click and go to a new site - and all the same advertisers are there with a no risk paid search model exaclty the same as Google. And when the searches come, the advertisers pay the newgoogle.com while GOOG revenue evaporates. Is that an impossible scenario. GOOG must be one of the most precariously positioned - ie exposed companies in the market today - and everyday that goes by where they rely on paid search revenue that can evaporate overnight.

MartinG
MartinG - Tuesday February 26, 2008 10:27AM EST

Another moronic UBS call.... wake up ..everything slows down in the recession. What a surprise... that people are cutting on their spending, companies on advertising etc etc. Why did not you tell me a week ago? NY cab driver can now the lower estimates for goog better than you do. What a fraud all these parasite analysts

TogbotI
TogbotI - Tuesday February 26, 2008 10:31AM EST

I DONT KNOW WHAT TO DO?!!! AHHHHHHH

Yahoo! Finance User
Yahoo! Finance User - Tuesday February 26, 2008 10:32AM EST

Glad to hear that Google is starting to reap it's rewards for spying or helping to spy on all of it's users. I stopped using Google after I learned that they were spying on me without my permission.

KennethG
KennethG - Tuesday February 26, 2008 10:35AM EST

sure rrubin1952, just like Yahoo is ruling the world now........

Yahoo! Finance User
Yahoo! Finance User - Tuesday February 26, 2008 10:41AM EST

Another "this tiem it's different" story. Ignore the Wall Street liars (I mean analysts). They are just high paid used car salesmen and want every dollar in your pocket,

nonobaddog
nonobaddog - Tuesday February 26, 2008 10:42AM EST

click!..... sounds like somebody flipped the switch on google...

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