Google slowdown no surprise
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Google shares tumbled Tuesday after the company's chief financial officer said, 'Really most of what's left is just organic growth, which means you have to grow your traffic and you have to grow your monetization.'
Google Chief Financial Officer George Reyes told investors at a Merrill Lynch conference Tuesday morning that 'clearly our growth rates are slowing. And you see that each and every quarter. And we're going to have to find other ways to monetize the business.' Google's share price was off more than 13 percent at one point Tuesday, before recovering somewhat in afternoon trading.
In a statement Tuesday afternoon, Google clarified Reyes' comments: 'As we have stated before, monetization improvements will continue to be a key factor in driving future revenue growth. We still see significant opportunities to improve monetization and intend to continue to focus our efforts in this area. Moreover, as we have stated in our SEC filings, our revenue growth rate has generally declined over time and we expect that it will continue to do so as a result of the difficulty of maintaining growth rates on a percentage basis as our revenues increase to higher levels.'
Google shares tumbled Tuesday after the company's chief financial officer said, 'Really most of what's left is just organic growth, which means you have to grow your traffic and you have to grow your monetization.'Google Chief Financial Officer George Reyes told investors at a Merrill Lynch conference Tuesday morning that 'clearly our growth rates are slowing. And you see that each and every quarter. And we're going to have to find other ways to monetize the business.' Google's share price was off more than 13 percent at one point Tuesday, before recovering somewhat in afternoon trading.
In a statement Tuesday afternoon, Google clarified Reyes' comments: 'As we have stated before, monetization improvements will continue to be a key factor in driving future revenue growth. We still see significant opportunities to improve monetization and intend to continue to focus our efforts in this area. Moreover, as we have stated in our SEC filings, our revenue growth rate has generally declined over time and we expect that it will continue to do so as a result of the difficulty of maintaining growth rates on a percentage basis as our revenues increase to higher levels.'
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