Google slipped - The inevitable story

CNet dissected the cause of Google's decline due to being too greedy and hugged. Google's stock price has plummeted in the afternoon session, shortly after its financial director predicted that advertising growth will level off in the near future.

Does Google have a bubble?Source: AP

"Star" Google has lost a lot of aura right after this comment. For the first time, Google stock prices fell below the $ 400 threshold, leaving only $ 380 and down 13% from the previous trading day.

End of the story

During a seminar at Merrill Lynch, Google's chief financial officer George Reyes stated that the growth of the world's number one search engine is slowing, and that efforts to make money from placing ads inside The search results will bring less results in the future.

The reason is that consumers now recognize the "paid search" technique, and therefore, advertisers will not be as salty as before. As a matter of course, growth will only come from other organic factors, such as increasing the number of searches.

Mr. Reyes' speech was broadcast live on the Internet and the original speech was also posted on Google's website. Earlier, Google also submitted a dossier to the US Securities and Exchange Commission, stating that "our revenue growth rate is declining steadily over time and this situation will definitely last, due to It is very difficult to maintain a high growth rate when its revenue has reached the threshold ".

Google shares had a record day of losses after its fourth-quarter financial results announced far below Wall Street's expectations. Since its first launch in August 2004, Google stock prices have quadrupled to $ 475 in mid-January. But now, this number is only about 380 USD, which means losing 1/4 of the value due to fierce competition and many other subjective factors.

Not only did I stagger, Google's comment also caused the Internet industry to suffer. eBay lost 3% of the value, Yahoo 2% and Amazon 1.5%.

Turn the file over

Now, the only thing people care about is how much Google will slide at a rate. "Everyone understands when they reach the threshold, things will start going down. Only, how much will it go down and whether it will fall sharply this year?" Analyst Philip Remek said. .

Google said they are still doing very well, but many others think their development is a "shadow" part that is about to fart. The Chief Financial Officer 's comment was not surprising, if you were to follow the analysis and comment long before on CNET. Let's review this journey:

- Missing the first goal: Google stock prices have fallen more than 10% after the company failed to reach its target revenue in the fourth quarter last month. This is the first time that Google has missed its target since the sale of shares in August 2004.

- Too reliant on online advertising. From AdWords incorporating search results to ads appearing directly on the website, along with installed ads in the Gmail service, almost all of Google's revenue comes from advertising. Yahoo and Microsoft have drilled into this Google Asin heel with all kinds of competitive services.

- Against the US Department of Justice's request: Google stock prices continued to waver in late January, when investors feared the company would be bogged down in a costly legal battle with the US government around. "customer privacy" story.

- Copyright controversy: Last week, Google was convicted of copyright infringement by the Federal Court for displaying a thumbnail of a website xxx.

- Digital Library controversy: Google is also being sued for the project to put millions of books into its search index.

- Massive recruitment: Google is expanding at a fast pace. According to Reyes's disclosure, there are 50-60 people employed by the company every week.

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