Google stock gets slapped

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pocketrockets

pocketrockets

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Google stock is getting a good slap in after-hour trading this afternoon after missing expectations... down almost 8% now.

MarketWatch GOOG stock

googhg3.png

'Paid clicks' a concern

Another point of concern was Google's rate of "paid clicks" on search advertisements that generate revenue. While its paid-click rate has been declining recently, Google executives have portrayed the trend as a result of quality initiatives.

Those initiatives have included reducing the graphical format of ads to cut down on accidental clicks, and the reduced sale of lower-priced keywords to advertisers.
Google said Thursday that its paid clicks decreased 1% from the previous quarter, but grew 19% compared with the same period a year earlier.

Company co-founder Sergey Brin said there's some evidence that Google may have been "more aggressive" than necessary in implementing some of its quality initiatives, though it continues to make adjustments.

"We've actually been reexamining some of that," he added.
Click to expand...
Um, yeah I think they do need to re-exam some of their QS issues.
 


Amazing that that stock tanked after what they fucking charged me last time...

It's still a crazy fucking equity.
 
They really fucked themselves with the QS. They lost a lot of advertisers to other networks. It was great for them temporarily because they got to charge up the ass per click with relatively the same volume of advertisers. I don't do ppc but from my understanding making money off adwords is a lost market. Now even if they lower their QS bullshit they still won't regain all their big advertisers back and then they're stuck with lower click prices thus less revenue.
 
Ok, I think I deserve a tip of the hat for my prediction. Read it and weep:

http://www.wickedfire.com/shooting-shit/28249-something-fishy-google-going.html

"I don't know about anyone else, but something is very fishy about Google's earning reports. Many people have reported a massive drop in adsense earnings, which should reflect in their stock price... I would think.

But, to be fair, the adsense disaster really didn't start until March so it might not be noticable until Q2.

I wonder if it is possible that Google could have stolen some of our money to inflate their numbers?"

:bowdown:
 
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I think Google still has further to go before it's correctly priced. Their P/E and forward P/E are both over 30. Historically, companies have always moved towards a P/E around 17 no matter what type of industry it is. The numbers Google posted today are very good for most companies, but investors have unrealistic growth expectations. It will be interesting to see how Google keeps their numbers up in future quarters. Profits from their mobile phone platform are still at least a year away. There's only so much money they can squeeze out by adjusting their Adsense percentage and playing games with Adwords quality scores.
 
Anyone else read the full article?
Even though the stock dropped over 40pts, Google's ACTUAL worth has increased 10% in a year (10% is pretty fucking huge when you're worth $1b). W... T... F...

That said, it should give them incentive to be more advertiser friendly again. Being the dominatrix has thankfully bitten them in the arse (kinda), and maybe they will be a little less concerned about controlling what people see, and how.

Some of their other initiatives piss me off something chronic.
Leave my medical info the fuck alone, I don't want Google selling me Rogain or some shit.
 
Deliguy said:
Now even if they lower their QS bullshit they still won't regain all their big advertisers back and then they're stuck with lower click prices thus less revenue.
Click to expand...

adwords is a bitch these days. I have a niche site with no ads, over 3000 links and hundreds of pages of content.
Im still getting poor 1.00 min bid quality scores for my main terms which rank 2nd page of goog search.

I still havent figured out what they want, after this latest slap
 
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