Internet giant Google has reported a steep decline on its stock price which had reached to $291 that is an all-time low since 2005, a year when the company has also experienced below $300 stock price.
Meanwhile, some financial analysts predicted that this trend may continue to decline, adding that the stock price may even fall to $200 if the advertising sector still continues to tighten its belt, which may seem to be most likely the case.
According to a famous analyst, Google may not only be the one which was affected by financial slowdown, saying that during this fourth quarter period, it is likely that most search engine markets will experience slow growth and less productivity.
While some people said that the company’s financial decline is caused by its move to abandon its tie up to another Internet giant Yahoo, analysts said that this is not likely the reason since all companies are affected by this gloomy economic condition.
Despite this unpleasant event, the company still remains optimistic that revenue will go up because of the growing demand for its service called Google Apps which is a collection of software used for business.
Google’s major source of revenue comes from advertising which approximately amounts to 99 percent. But with the global economic slowdown, advertisers—lifeblood of the company—had to adopt contingency plans to cut costs, a move which is very important to survive this great economic ordeal.
What is happening now to Google’s may prove to be a warning, a proof that even Internet giants are also affected by financial decline. And with this event, it is easy to see how other smaller companies are trying to survive in this trying period.