Google Shares Down Big On Report
A $25.74 drop in Google's share price, to $364.50, followed statements from its CFO that the company's growth is slowing.
The selloff began in earnest after Google CFO George Reyes said their paid search has mostly peaked in terms of the profits they can generate, the Wall Street Journal reported.
"We're going to have to find other ways to monetize the business," Reyes said, speaking at a Merrill Lynch investor conference Tuesday.
"At the end of the day, growth will slow. Will it be precipitous? I doubt it," he said. "I'm not turning bearish at all. I think we've got a lot of growth ahead of us. It's a question of what rate."
Reyes said the new products Google has been introducing at a furious pace recently will produce "meaningful" revenue contributions in the future. The mobile and local arenas, in particular, offer "a lot of opportunity," he said.
Trading volume of GOOG skyrocketed for the stock as it fell by $25.74 per share before gaining a third of that back at press time. Over 26.5 million shares have been traded today, compared to 10 million yesterday.
The article noted how Reyes was questioned about keyword pricing and complaints from large advertisers about a possible "price bubble." Reyes dismissed those worries, and claimed "there's still headroom left in pricing" based on industry trends.
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David Utter is a staff writer for WebProNews covering technology and business.
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