One by one, the bulls are throwing in their towels:
Barrons: Goldman Sachs’ James Mitchell… trimmed his profit estimates for the company, citing several factors all of which stem from the same basic issue: the economy appears to be crumbling. More specifically:
- Macro and consumer data in October was “poor.” He notes that “paid search is typically a real-time media sale, so revenue should react rapidly to macro deterioration.”
- Declining average order values at retailers eBay, Amazon.com and Blue Nile, among others likely reduce theoretical threshold bids per keyword.
- Negative commentary from Ask.com and AOL on search trends; they cited “declining consumer propensity to click on paid links and declining advertiser willingness to bid up paid links.”
Will the company be shrinking by Q2 next year? Something to think about.
Business Insider Emails & Alerts
Site highlights each day to your inbox.