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Shares of search-engine company Google Inc. (GOOG) sagged to levels not seen in nine months after an investment bank report suggested search advertising growth might be slower than expected. According to a Raymond James note, search-engine marketers have seen weaker paid search spending in the second quarter of the year. Search engine markers help websites promote themselves by getting higher rankings in web searches. Geographically, the U.S. and Europe were weaker than expected, while the Asia-Pacific region remained strong, according to the note. By industry, retail, auto, consumer electronics and technology were weak, while finance was strong. Retail paid search spending in the U.S. is up as much as low double digits year over year, below search-engine marketer expectations of growth as high as 20%, the investment bank wrote. "If the softness persists in June, we believe we could see a modest sequential decline in Google's net revenue," wrote Raymond James analyst Shyam Patil, who expects the company's revenue to rise 1% sequentially in the quarter. "We will consider revisiting our estimates following our June month checks." A Google representative didn't immediately respond to a request for comment. Google shares ended Friday down 3.1% at $485.02, the first time the company's shares have closed below $500 since September 2010. -By Andrew Morse, Andrew Morse, Dow Jones Newswires; 415-439-6420, andrew.morse@dowjones.com http://online.wsj.com/article/BT-CO-20110617-712098.html |
