Google’s search advertising revenue fell for the first time
Today, Google has published financial results in the II quarter. 2008 A 10% drop in Google shares makes you look at the numbers more closely: what's wrong with them?
At first glance, everything is fine: revenue of $ 5.37 billion (three times less than that of Microsoft, but also not bad), an increase of 39% compared with the same period last year and an increase of 3% compared with the previous quarter. Quarterly profit grew by 35% over the previous year and amounted to $ 1.25 billion.
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However, all these achievements sharply diverged from the expectations of investors . According to preliminary forecasts, Google should have worked much better. Investors hoped that the Internet business would not be affected by the general stagnation in the American economy, and Google could develop at the same rate due to its foreign operations and the transfer of all advertising from offline to online. But this did not happen. Google’s revenue growth has also slowed, and quite noticeably. Revenues from search advertising and AdSense declined by 1% compared to I quarter. 2008 This is the first such case in the history of the company. If you look only google.com site earnings, then they fell by 4%. This also happened for the first time in history.
Of course, the pressure on Google stock prices is also exerted by the fact that Yahoo and Microsoft are closer than ever to the merger agreement, and Google recently signed a 10-year contract with Yahoo for the delivery of contextual advertising to them on the portal. If Yahoo goes to Microsoft, it will be a sensitive blow. But with the diversification of business from Google is still tight: neither YouTube nor DoubleClick is not paying off multi-billion dollar investments. Search brings the company 94% of revenue.
At first glance, everything is fine: revenue of $ 5.37 billion (three times less than that of Microsoft, but also not bad), an increase of 39% compared with the same period last year and an increase of 3% compared with the previous quarter. Quarterly profit grew by 35% over the previous year and amounted to $ 1.25 billion.
')
However, all these achievements sharply diverged from the expectations of investors . According to preliminary forecasts, Google should have worked much better. Investors hoped that the Internet business would not be affected by the general stagnation in the American economy, and Google could develop at the same rate due to its foreign operations and the transfer of all advertising from offline to online. But this did not happen. Google’s revenue growth has also slowed, and quite noticeably. Revenues from search advertising and AdSense declined by 1% compared to I quarter. 2008 This is the first such case in the history of the company. If you look only google.com site earnings, then they fell by 4%. This also happened for the first time in history.
Of course, the pressure on Google stock prices is also exerted by the fact that Yahoo and Microsoft are closer than ever to the merger agreement, and Google recently signed a 10-year contract with Yahoo for the delivery of contextual advertising to them on the portal. If Yahoo goes to Microsoft, it will be a sensitive blow. But with the diversification of business from Google is still tight: neither YouTube nor DoubleClick is not paying off multi-billion dollar investments. Search brings the company 94% of revenue.
Source: https://habr.com/ru/post/29352/
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