Friday, October 17, 2008
Bloomberg Claims Search Ads Gave Google 3rd Quarter Boost
Despite its recent stock slump, don't abandon your hope in Google. In the middle of yesterday's trading, the search engine leader slipped to a 52 week low at 310, but Google's third quarter profit was 26% higher than 2007 (1.35 billion, from $1.07 billion).
Analysts point to the advertising's continuous shift from TV and Print to Internet. An article at Bloomberg.com provided insightful numbers regarding the comprehensive transition by advertising agencies.
The Internet will account for 8.7 percent of the $284 billion in U.S. ad spending this year, up from 7.2 percent in 2007, according to Barclays Capital. In the U.S., Google fielded 63 percent of online searches in August, double the market share of Yahoo! Inc. and Microsoft Corp. combined. That dominance has helped Google command higher prices for ads.
Jeff Lindsay, an analyst with Sanford C. Bernstein & Co. in New York told Bloomberg that Google's third quarter news was "shot in the arm" investors need.
People lost a lot of faith in the Internet, but this is exactly what the doctor ordered.
Short-term investors may have grown weary of tech stocks, but the big picture still confirms that advertisers are searching, and finding, better solutions online. Long-term investors should keep that in mind. After yesterday's rollercoaster ride, It will be ineteresting to see how Google fare' s today,
By Matt O'Hern at 09:11 AM | Comments (1)