Wednesday, October 08, 2008

I pick GOOG

Google just dropped another 5% to do below $350 yesterday. I'm not saying its time to get in, but I'm waiting on it.

Granted it seems pretty much inevitable that we're heading for a recession (or depression?), ad dollars are bound to drop when companies look for ways to cut costs and minimize expenses during this time.

GOOG obviously hasn't been cut any slack based on its recent stock price knife dropping, but they are probably still one of the best advertising platforms out there in the market. At the least, advertisers get a certain ROI via search advertising compared to television and print medias. And even within internet search, the major hurting will be on YHOO and MSFT's business more so than GOOG.

According to Barclay, total ad spending in the U.S. is forecasted to decline 3.6 percent this year to $284 billion and then another 5.5 percent in 2009 to $269 billion. Of that total, Barclays is still estimating that Internet ad spending will grow 17 percent to $24.8 billion in 2008. But that represents a $1.4 billion haircut from its previous 2008 estimate of $26.2 billion.

Are We Sure About Pending Collapse of Ad-Supported Internet?

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