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A BI chart drives home the troubling nature of the recent decline in Google's (GOOG -4.1%)...

A BI chart drives home the troubling nature of the recent decline in Google's (GOOG -4.1%) cost-per-click (CPC) is. After rising for 7 straight quarters, CPC has fallen over 13% during the last 2 quarters. Though Google provided plenty of explanations for the drop during its earnings call, today's selloff suggests the Street isn't satisfied, not when fears are running high that the issues aren't easy to resolve. (more)
Comments (5)
  • Stone Fox Capital
    , contributor
    Comments (6066) | Send Message
     
    Seriously? You guys act as if revenue declined or something. Total clicks were up 39%. Thats how business works. If somebody has a $100/day budget, don't you think they'd rather have 50 clicks instead of 25. Regardless though they still spent $100 either way. In fact, with the higher clicks aren't they likely to increase adds rather than decrease.
    13 Apr 2012, 05:59 PM Reply Like
  • cantaffordit
    , contributor
    Comments (23) | Send Message
     
    I stopped reading at "BI chart" because that site has zero credibility along with an even lower standard for journalism. They can't even publish something without major typos and grammatical errors. In fact, this site will lose points in my book any time something from BI is used here for any reason. Seriously, this is a bigger screw up than the recent attacks on Romney's wife. This site should know better.
    13 Apr 2012, 06:11 PM Reply Like
  • Modernist
    , contributor
    Comments (2109) | Send Message
     
    "Most analysts seem to agree that CPCs, taken in isolation, are not the best measure of Google's business." Not particularly "troubling" then.
    13 Apr 2012, 07:59 PM Reply Like
  • jonchait50
    , contributor
    Comments (18) | Send Message
     
    I am a huge $GOOG fan and have been for some time. THis is one of the great success stories of the current generation. BUT there was a lot not to like in the Google press release. CPCs are an issue. Basically prices for the product dropped but they made it up with volume. This isn't so bad for an internet company where the marginal cost is zero (unlike a retailer), but still it is not pristine. The explanations were too complicated. In general, Google PR is not very good which causes me to question Mr. Page. The story of the stock dividend is also weird. Why not keep using Class A stock. Are they saying that the 10% voting rights of Class A is too much dilution????This is not a question of Page and Brin selling shares due to the stapling agreement. This is a question of what are they going to do with the new shares. Many investors are worried about a large acquisition. Again, not a compelling explanation. Another issue: lack of a compelling explanation about the Motorola acquisition. Is this a patent play? or is it an attempt to build an "eco-system" like Apple? Finally, all the talk about Google being a "big company" and a focus on "long term" decision making seems an excuse for slower earnings growth. Again, I love the company, but even my faith is shaken.
    14 Apr 2012, 10:23 AM Reply Like
  • mikeurl
    , contributor
    Comments (422) | Send Message
     
    Why does it even matter if Google makes money or not? They refuse to return any to shareholders even though Larry pays himself 10s of millions in stock options.

     

    Personally I think it is absurd to put money in Google. All you're doing is transferring your money to management's pockets. Here is just one of an endless parade where Larry stuffs shareholder cash into his pockets:

     

    http://bit.ly/IPUJED

     

    There are literally dozens just like it. That one was worth about 17.5 million for Larry in stock options. I don't mind when people get paid but when you are a public company you also have a responsibility to return value to your shareholders. Google's refusal to pay a dividend should encourage everyone to sell Google stock until they DO pay a dividend (or at a minimum initiate a share repurchase plan).
    14 Apr 2012, 01:20 PM Reply Like
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