Google’s fourth quarter revenues won’t grow any over the third, says Barclays analyst Douglas Anmuth. His reasoning: Like everywhere else, people are spending less online, so advertisers won’t want to spend as much as usual to bring shoppers to their site via Google’s search ads.
Anmuth says that search engine marketers tell him their clients are paying less per click so far this quarter and that October was “weaker than expected, suggesting macro finally catching up with Google.”
Anmuth expects Google (GOOG) to post $4.05 billion in Q4 sales, below the Street’s $4.31 billion consensus.
Update: One particularly strident Google bull articulates Google’s usual counter-argument:
a) People have less money = people choose more carefully WHERE they spend that money…
b) Choosing more carefully = doing research…
c) Doing research = searching ONLINE…
d) (do I really need to spell it out for you??)
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