Google Revenues To Shrink
By Anna Johnson on December 6th, 2008Global Equities Research analyst Trip Chowdhry predicts Google’s revenues will decline over the next three years. He forecasts the company’s revenues will drop from $15.71 billion in 2008… to $15.23 billion in 2009… to $14.57 billion in 2010.
Chowdry’s pessimism derives from research indicating that the challenging economic conditions will impede Google’s online advertising business. Already, he says, the number of keywords sold by Google is down 2-5 percent, with bids on keywords down by as much as 20 percent.
What’s more, Google is focusing more and more on cutting costs and boosting revenues. Over the last few months, the search giant has not only canceled plans to build a data center in Oregon, but has also cut expenditure on food, travel, contractors and Friday afternoon parties.
At the same time the company is aggressively pursuing new revenue opportunities, having opened up new ad channels including Google News, Google Maps, Google Image Search and YouTube.
Presumably, however, Chowdhry regards these moves as insufficient to avoid his predicted three year decline in sales.
Source: Nicholas Carlson, “Google Revenues To Shrink Through 2010″, Silicon Alley Insider, December 2, 2008
