The Chief Financial Officer of Google George Reyes said that there could be a slowing of advertising revenue growth. Speaking at a Merrill Lynch investor conference in
Reyes was quoted by CNBC financial television as saying “growth is slowing and now largely organic; the search monetization gains have now been largely realized."a
Eric Auchard writing for Reuters offers some insight into what that means when he says “Organic growth relies on factors such as overall Internet users or the number of Web search queries, instead of business efforts Google makes, such as modifying its pay-per-click ad system to place more ads on each page.”a
In response to the comments made by Reyes, Google shares dropped as much as 13 percent, which is more than $50, and finally recovered to being down $22 or about $368 on the Nasdaq.
This is really not to relevant in my opinion as there is no way any company can maintain levels of this type of growth indefinitely. The real story is that Google is simply starting to come in line with other companies that begin to mature and as a result experience steadier, consistant long-term growth.
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