With the worldwide economic slow down, the Internet and the technology industries are now greatly affected, and unfortunately, even those seemingly indomitable ones are starting to tremble.
Google, one of the most popular search engines, has been affected by the gloomy economic condition experienced by most countries especially the United States. Acquiring its revenue mainly from advertising, this company has experienced lesser Internet advertising.
In the first quarter of the year, Google has managed to gain revenue increase by 7 percent which has defied the prediction of doomsayers saying that this corporation may not be spared from the domino-effects of the present economic situation. But after the second quarter, the company’s stock has plummeted to 45 percent, a rate which has been expected after the ignominious downfall of Wall Street.
According to the quarterly report of Google which can be seen on its website, the company’s total revenue is mostly generated outside the country. A total of 51 percent of its profit came from abroad, a huge rate of this is from United Kingdom which amounted to $803 million (almost 15 percent of the international revenue generated by the company).
According to experts, Google’s financial condition—whatever it is—will pose a great impact for the Silicon Valley industry. If this company seems to be expanding, venture capitalists will be more willing to invest their money to develop new technologies, but in contrast, if the corporation is generating low revenue due to fewer advertisers, investors will not be lured to put their money on what seems like not a viable investment.
Meanwhile, the company is quite optimistic that it will bounce back after the second quarter, believing that government interventions in fiscal and monetary policy can alleviate the gloomy economic condition.
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