Shares of Google closed today under $300 a share for the first time since October 2005,, effectively wiping out 3 years of profits.
Shares hit an interday low of $287.86 before closing at $291.
Shares have been battered this week as analysts predict slower revenue growth for the fourth quarter amid signs that Internet users are growing less likely to click on advertising links, Google’s main source of revenue.
Analysts from Goldman Sachs and Barclays Capital both lowered earnings and revenue estimates because of the deteriorating economy.
Citi analyst Mark Mahaney joined them Wednesday, predicting the growth rate in online advertising will “slow materially” in the fourth quarter.
As Google get squeezed, domainers will get further squeezed as our parking revenue dropped while Google earning increased. Now that Google earning are predicted to decrease what will become of paring revenue?
It was freakin’ jaw dropping to see the close price today for me.
Oh well.
Sammy
Actually down another few bucks in aftermarket trading
Well, it has been coming for a while now… not really a “shock” or real big surprise but parking as a whole is really inconsistent when you think about the way it is structured even when things were great — can’t expect anything good to come out of this latest developments though. The good days are over…. Time for change.
Google makes great money with their adsense program – if you have your domain names parked and deal directly with google then it is up to google how much they pay you.
Google looks after itself as number one and if they can pay next to nothing any second party that has their ads displayed on a website they will do so.
You people think that google is a great company – they make lots of money for themselves so yeah they are great to themselves.
Think about it if google would be such a great company they would pay second party advertisers much better than they do which means they would make much less money (profit for themselves).
With click fraud on the increase it is good that consumers WAKE UP and find alternative ways to get more value for their money since google is not the only way in ppc marketing.
Hmmm…wouldn’t it be something if their stock got as low as the original $85/share IPO price?
Given how successful they are (based in part on us domainers’ backs), that would be a shock…though I never thought we’d see sub-$300/share again.
Any of their early employees who cashed out over these past couple of years are smiling pretty wide these days…
UPDATE
Google today Thursday November 13, hit a low of $280 before rallying with the rest of the market and closing at $310.