Market Reacts Badly to Google Results

Google announced Q2 results and the market has reacted badly dropping at time of posting to $493.85 (they opened the day at $534.16).

AdViking will be looking around tomorrow to understand the why’s of the fall but probably is just the market shakiness to do with potential impact of the credit crunch on advertising.

Here’s some early coverage that’s going to be morning reading:

  • New York Times
  • Washington Post

    One quick tidbit is that DoubleClick integration isn’t due to finish for a couple of months, so it seems like Microsoft is on the inside track there with it’s progress with the aQuantive integration.

  • Google Points

    Q2 – Revenue $5.37 billion / Income $1.25 billion

    They are having problems managing their cash (Perhaps having so many Self Service SME isn’t a good thing then?)

    Larry vs. Sergey

    Larry Page and Sergey Brin don’t just have a problem agreeing on what beds should be in the Google jet – seems that Larry Page is behind a drive for quality ads that Sergey thinks has gone far enough.

    Jonathan Rosenberg, Google’s senior vice president for product management,  said that Google  is decreasing it’s ad inventory in efforts to improve “ad quality”.

    Rosenberg said “Larry often says we would be better off if we showed one ad — the perfect ad,”

    In response to this Sergey said:  “There is some evidence we have been a little more aggressive in decreasing coverage than we should have been,”

    “Clearly that is not the ideal strategy, because we don’t want to end up with no ads,”

    Hal Varian on the Impact of the Economy

    So to summarize, when we look across verticals we see that consumers are being cautious in their online spending patterns just as they are in their offline spending. Despite the weakness in the economy, advertising revenue seems to be holding up remarkably well in most sectors

    Enterprises are Starting to use Google Apps

    Some of the enterprises mentioned that are using Apps:

    • Valeo, one of the world’s leading automotive suppliers
    • Government of Washington D.C. has 38,000 users
    • Telegraph Media Group 
    • Sanmina

    Mobile

    Nothing exciting hear to say and actually from Sergey’s Use Case he gave (hyper-local pizza), very underwhelming and you can assume they will to acquire to get the knowledge here.

    Microsoft Gets Hit as Well

    Similarly, Microsoft announced and is taking a hit even though they beat Analyst expectations.

    Microsoft Points

    For 2008, Microsoft hit $60.4 billion revenue, $17.7 billion net income for 07/08.

    Q4(/Q2 08) – Revenue $15.8 billion, Net Income $4.3 billion

    The XBox 360 group was in the black for the first time.

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