Google Hits 52 Week Low

by Darren

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At one point today, Google traded at $435.78, which as low as the company has traded for in the last 52 weeks. The news that affected the company today was that top executive Sheryl Sandberg was leaving the company to join rival FaceBook. Investors didn’t care for that news.

It is understandable why people are concerned with Google’s valuation. The company has been on a non-stop growth rampage since it went public. But now signs of strain are starting to show. For the first time ever, Google has announced that less people clicked on their adds this year than last.

Google is also in danger of a prolonged continued slump in the overall economy. If company cut back on ad spending, they are vulnerable. Add in the onset of “banner blindness” and you have legitimate worries about whether the company can continue to grow top line revenues.

The next few months should be interesting as they relate to Google. If the downward spiral continues, things could get very ugly.

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