Barclays Capital cut its fourth-quarter revenue estimates on Google and lowered its price target on the stock.
Analyst Douglas Anmuth said the recent industry checks and data points suggest the search environment has deteriorated, perhaps materially, in fourth quarter.
He cut his price target on the stock by $52 to $490, but maintained his “overweight” rating.
“Checks with multiple SEMs (search engine marketers) and comments from IAC & Infospace lead us to believe that October was weaker than expected, suggesting macro finally catching up with Google and search, impacting both paid clicks & CPCs (cost-per-clicks),” Anmuth said.
The analyst said he now projects the company’s fourth-quarter net revenue to be flat quarter-on-quarter at $4.05 billion, compared with his earlier outlook of a growth of 3.4 percent.
“We think deceleration in search spending driven more by soft consumer demand than by marketers cutting budgets. Checks indicate savvy marketers want performance-based vehicles more than ever,” Anmuth wrote in a note to clients.
Anmuth did say that Google should still gain share of advertising and online budgets.
It doesnt take a rocket scientist to tell that revenue is going to be down in google – Look at what has happend to our ppc etc.
Google is still an excellent investment – Wish I was smart enough to buy shares in the early days of google but I think in 10yrs time people shall be saying wish I was smart enought to buy shares in google in 08/09
Google is going to only going to get bigger.
I think the G1 shall help boost there earnings also for end of this quarter and early next.
Regards,
Robbie
Founder
RegFeeNames.com
“The Home Of The Reg Fee Name”
@ RegFeeNames
10 years ago, Google was not cheap either
@ skydomains.com
I didnt say it was cheap then but its cheap now compared to what todays prices are.
In the next 10yrs today shall appear cheap also.
Regards,
Robbie
Founder
RegFeeNames.com
just curious, didn’t google debut at 500 Franklins?
Sky
Google IPO price was $85 a share based on a dutch auction system.
First trade was around $100 a share and it has been as high as around $750.
I must have been real behind or missinformed.
I started using google for search before it became mainstream but the first time I learnt of the ipo, I remember it being out there for me.
thanks for the info
Google share price goes up and down – it is one of the most volatile (swinging) stocks which is great for “day traders”.
The Google IPO was ‘out there’. At $85 in August 2004, their market cap was roughly $25 billion compared to the then king of the mountain Yahoo! which was at $30 billion.
I thought the same thing about Baidu when it was at $80 and expected it to collapse and instead watched it march straight to $300+.
Back in 2000, Akamai was in the hundreds. In 2002, it traded for $0.80 for weeks. It went back up to $70 in 2006. I believe there are bushels of stories like this right now when we look back in 5 yrs.
Internet penetration is still weak in many places across the world… Google has lots of growth and has diversified pretty well aside from PPC so their technology is what will keep them at the top…may slow down for a bit but still lots to come.