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CommentMonday, June 8, 2009

Benchmark Analyst Forecasts "Further Pull-Back" In Advertising

Loses some confidence in Google

Recent financial headlines may have made it sound like the "all clear" would soon be sounded, but at least one Benchmark Capital analyst thinks we should still keep our figurative heads down.  Clayton Moran came to this conclusion while researching a report about online advertising and Google. 

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According to Joseph Tartakoff, Moran wrote, "Street sentiment has turned positive as economic indicators and online ad trends stabilized in April, but more recent online activity indicates a further pull-back by large advertisers."

And this development could unfortunately walk hand in hand with "exaggerated seasonal softness" (AKA a bad summer) in the overall economy.

At least a few investors seem to accept Moran's information and reasoning, as Google's stock is down 1.97 percent at the moment compared to the Dow's and Nasdaq's 0.91 and 1.13 percent declines.  Which isn't a great way to start the week, however you slice it.

But not everyone's backing away from Google.  Rich Smith has already composed an article for The Motley Fool arguing against Moran's call and describing the Mountain View-based search giant as "one of what could be the best businesses in history."

About the author:
Doug is a staff writer for WebProNews. Visit WebProNews for the latest eBusiness news.

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