BBC News
watch One-Minute World News
Last Updated: Wednesday, 27 February 2008, 12:38 GMT
Ad revenue worries knock Google
Google shares fell sharply after analysts reduced price targets
Fears a slowing US economy may be hitting Google have led analysts to cut the share price target for the firm.

The move came after research firm Comscore reported a sluggish January in the viewing of paid-for-advertisements on the Google site.

The total clicking on to Google's paid adverts was 532 million, down from 533 million a year before, Comscore said.

UBS cut its price target from $650 to $590, and BMO from $690 to $590. Google shares fell 4.57% to $464 on Tuesday.

Its shares reached a peak of $747.24 in early November 2007 and were just below $700 as 2008 began.

However, now it appears that shares in Google may be getting dragged down by the sluggish US economy.

Wider worries

Although there was strong growth in searches on Google's US website in January, there was a decline in the number of people clicking on through to the paid-for advertisements which create the bulk of Google revenues.

UBS analyst Benjamin Schachter also warned that international growth, including the UK, Google's second-largest market, was a concern.

There had first been signs of a slowdown at Google after it reported disappointing profits at the end of January.

Google's profits were up 17% to $1.21bn (608m) for the three months to the end of December, but some analysts had been hoping for stronger growth.

Google takes UK's top brand spot
25 Feb 08 |  Business
Google troubled by Microsoft move
04 Feb 08 |  Business
Google profits disappoint market
31 Jan 08 |  Business
US clears Google-Doubleclick deal
20 Dec 07 |  Business
Google profits miss expectations
19 Jul 07 |  Business

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Americas Africa Europe Middle East South Asia Asia Pacific