Google Not Immune to Economy?

Analyst Projects Zero Growth From Third Quarter

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[ Business]

So far, there haven’t been many signs that Google is having much trouble adapting to the economy. While companies all across the web are cutting jobs left and right, Google is brushing off deals with other major search engines that the other parties would kill to get done. CEO Eric Schmidt said in a NY Times interview the other day that Google was doing thing like:

– Slowing down Hiring

– Keeping detailed expense reviews to minimize wasted money

– Being more careful with expensive projects that don’t guarantee substantial ROI

…to get through the economic crisis. Some don’t believe it is that simple for Google though. Even a powerhouse such as Google is not immune to the economy, and Barclays analyst Douglas Anmuth expects that fourth quarter revenues will be no larger than the third quarter according to Silicon Alley Insider:

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.

Anmuth doesn’t think as many people want to spend money on search engine advertising right now, and that may be true, but I would think the holidays coming up would spark some AdWords action, as businesses need customers more than ever.

Google Not Immune to Economy?
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