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Google shares take a dive after disappointing earnings

From: Google shares plummet after disappointing earnings

“Management said economic turmoil in the United States and parts of Europe appears to be causing consumers to click less frequently on the ads that generate virtually all its profits.”

That’s an interesting statement… I wonder how the economic downturn really effects click rates. I can certainly understand how it would effect actual consumer spending - but I wonder how it effects browsing and click throughs?

I would think, if anything, the economic challenges would have an effect on the types of ads. Which is probably why the article also states ‘Google managers said they expect the Mountain View-based company will thrive even if the economy weakens further.’

That’s the fascinating thing about a company like google - they have all of the data one could imagine - not just static economic data, but live streaming user-behavior data. In other words, as users change their behaviors and habits, it seems to me that google is well position to likewise shift gears and follow the trends.