Call To Action: What’s Your Take on Google’s Stock Plunge?

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The botched release of Google’s Q3 earnings report and its subsequent effect on the company’s stock is predictably drawing reaction from several quarters.

NPR blogger Mark Memmott said the stock “fell like an Austrian skydiver,” with share prices plummeting to around $687 each — down about 9 percent — before trading was temporarily halted just before 1:30 p.m. ET yesterday. Google’s “profit declined 20% as total costs jumped and advertising prices continued to slide,” The Wall Street Journal reported.

Ash Kumar, Founder & CEO of TapSense, told Adotas that the news came as “no huge surprise” to him because he feels the company is behind the curve in its mobile strategy.

“Google is currently missing out on more than 90 percent of mobile ad strategies that use in-app advertising as their primary mobile advertising approach,” said Kumar. “it needs to find a way to quickly become app centric.  Consumer app adoption is at an all time high and Google’s continued focus on web browser pages and search via its PC-centric approach is quickly becoming obsolete. Today’s report is a clear indicator of that.  We see less than 10 percent of our customers using mobile web as part of their mobile strategy and Google’s approach is now out of date.”

But Henry Blodget of Business Insider said the company’s Motorola subsidiary was the primary drag on Google’s Q3 earnings.

“Most of the disappointment came from a business that was almost certain to  disappoint — the dying elephant known as Motorola,” Blodget wrote. “Google’s core business, meanwhile, came in just below expectations.”

What’s your take? Leave a comment below and we’ll add your voice to the chorus.

4 COMMENTS

  1. Mobile may have indeed played a part in Google’s earning demise, however Google’s hubris in the marketplace is also to blame. Google search results are skewed to Google products and features; most irrelevant to the original search query. Then too the Panda, Penguin and now Exact Match Domain algorithm changes are making many Internet marketers eschew Google for more market friendly search engines. Google may still be the 900 lb gorilla in the room, but competitors can smell the blood and are circling in for a piece of that advertising pie.

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