SAN FRANCISCO, Feb 26, 2008 (AFP) – Google’s stock price sank Tuesday in the wake of a report hinting that boom times may be over for the Internet darling’s money-making online advertising. The number of click ads in January was essentially the same as it was in the same month a year earlier, and dipped seven percent from December, a month known for major holiday shopping, according to industry-tracker comScore.
Google’s stock price dipped below 448 dollars per share on Tuesday but was 462.55 dollars in after-hours trading at 23h00 GMT, representing a five percent drop for the day.
Investors evidently fear the comScore figures signal an end to Google’s years of exponential revenue growth.
“The difficulty is that Google is being measured by high growth year over year that has been holding the stock price up,” said analyst Rob Enderle of Enderle Group in Silicon Valley.
“Any reduction in growth rate is going to have a catastrophic effect. When the market is already nervous about going into a recession the combination will cause the stock to trade down.”
Google was founded in 1998 by Stanford University students Serge Brin and Larry Page. Its stock price rocketed after