Dec
24
“But if you live by advertising, you can die by advertising. If there were a downturn in the Internet ad market for any reason, Google wouldn’t be able to meet Wall Street’s expectations. Its stock, perhaps already inflated with a price-to-earnings ratio of close to 90, would lose some luster. (Yahoo!’s PE is in the 30s, and Microsoft’s is in the 20s.) Google is well aware of this. In its latest quarterly report, the company warns that reduced ad spending “could seriously harm our business.”
Has Google Peaked? - By Adam L. Penenberg - Slate Magazine