mobile-bannertablet-bannerdesktop-banner

Google: It’s the economy stupid

Jul 17, 2008

Precisely six words in Google's news release Thursday afternoon tell the whole story: "despite a more challenging economic environment." The words are attributed to Google (goog) CEO Eric Schmidt, and they explain why the stock is plummeting in after-hours trading. Google shares were down 12% at last check. That's $62 per share. Yes, Google's missed Wall Street's earnings expectations. But the real thing to focus on in the earnings call, beginning at 4:30 Eastern, is what Google has to say about the economy. Until now, as I've written, Google hasn't been touched.

But the weak economy clearly is affecting online advertising companies. Valueclick's (vclk) pre-announcement knocked 20% off its stock Thursday. This can't be good for Yahoo (yhoo), though those shares haven't budged much so far.

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions