Google's Decelerating Clicks
According to an article this morning in the Wall Street Journal, Google Inc.'s short-term outlook has grown increasingly murky in the wake of new data showing weakness in the number of consumers clicking on the Internet giant's search ads, the source of nearly all of the company's revenue.
The February data from research group comScore Inc. marks the second consecutive month that Google's paid-click data disappointed analysts and investors, who responded by driving the company's shares down 3.1% Thursday.
But analysts were divided about the reasons for, and the impact of, the disappointing data. Some suggested economic weakness could cause Google to fall short of Wall Street's first-quarter estimates, while others argued that efforts by the company to trim the number of clicks -- which should enable it to increase the amount it charges per click -- will boost the company's long-term prospects.