Google’s shares drop as surfers cease clicking

27 Feb 2008

From an all-time high of US$747 per share in November 2007, Google stock value had dropped by 38pc last week.

New figures from internet analytics firm ComScore showing a lowered click-through rate on Google ads may have caused investors to react, leading to the internet giant’s share price falling by a further 4.6pc yesterday, as reported in the New York Times online.

ComScore’s report found that while Google’s paid clicks fell by 7pc in January 2008, the number was also relatively flat in comparison to figures from the same time last year.

Paid clicks on Google represent the number of times a paid ad is clicked on by a web surfer, which affects profits as Google receives revenue from an advertiser only when the ad has actually been clicked on.

These figures follow the search engine giant’s less than impressive quarterly results for the period ending 31 December 2007, which saw quarterly profit growth fall under 25pc for the first time in over three years since the company went public.

Several analysts are saying this downturn for Google may be part of the overall economic climate currently in the US, while others feel is it the ‘waterfall’ effect, where investors are simply following suit on the heel of speculation and selling their shares.

By Marie Boran