on Tuesday, the Internet search engine giant Google (Google Inc.) (GOOG) shares fell nearly 7%. A previously released data show that Google’s advertising hit rate continued to decline, and advertising is the most important source of revenue for the network search engine company.
is the information technology research company comScore released late on Monday, then published a number of analysts in the Google report. They are worried that the company is headquartered in California Mountain View in the first quarter of this year will not be able to meet the expectations of Wall Street analysts.
11:17 morning EDT, the company’s shares fell $34.95 to $451.49, down 7.2%. This is almost the lowest price in a year. Since November last year, the company’s share price has lost 38%.
according to the information provided by the comScore, in January, Google’s so-called pay click rate – the number of Internet users to click on the number of links advertising fell 7% compared with the previous year, essentially flat with the same period last year.
Google in the fourth quarter earnings report said on this part of the business concerns, but the company said the pay per click rate of decline was caused by the company in order to reduce users mistakenly click on ads and use technology.
The release of
in comScore BMO Capital figures, Markets analyst Lee Diego Rumsfeld (Lee Westerfeld) will be Google’s target price from $690 down to $590, but still keep its stock rating in "market flat".
Bell Sten analyst Robert peck (Robert Peck) pointed out that the comScore data released by the lowest level of the statistics.
"although this is only an American business for Google digital, and its accuracy is questionable, statements of a school, but this figure is still worthy of attention, reflects how much we hear about the rumors that the search engine company, the U.S. economic slowdown may be the company with high CTR says one reason goodbye" Beck pointed out. Google’s target price set at $650, the stock rating is still outperform".
some analysts do not seem so worried. Susquehanna Financial Group analyst Marianne – Walker (Marianne Wolk) pointed out that Google is taking measures to improve the link quality and click rate, which may lead to the decline in revenue in the short term, but in the long term of business.
"therefore, we remain optimistic about the company’s prospects. Google will be able to improve its pricing power by increasing the site’s conversion rate, which will offset some of the adverse effects caused by a drop in the rate of paid clicks, "she said.