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Friday, March 14, 2008
Google Stock Emulates Sliding Economy
The U.S. economy is wheezing so badly that even Internet power Google Inc. and its once robust stock is looking haggard. The focus on Google's recent deterioration sharpened Tuesday as investors reacted to the latest evidence indicating fewer people in the United States are clicking on the Internet ads that generate most of the online search leader's profits. This is an unsettling trend. It was captured in a closely followed report from Internet search firm comScore Inc. when it shoved Google shares to an 11 month low. The company's market value has lowered 33 percent or about $70 billion, during the first seven weeks of the year. Not only that, but the tech-laden Nasdaq composite index has also declined by 12 percent during the same time period.
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