Two Ways: Google Searches for More Ad Dollars
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It was hard not to notice Google (GOOG) in today's session. Investors didn't take kindly to lowered expectations for the search engine advertising sector.
According to the Wall Street Journal, the Search Engine Marketing Professional Organization, or SEMPO, will release a survey this week by 890 advertisers showing only a modest gain in search advertising spending. In North America, an increase of just 9% -- $14.7 billion compared to $13.5 billion for the same period last year -- is expected.
It's a dramatic shift in optimism from the firm's previous forecast, which called for the industry to grow to $18.8 billion in 2009. For 2011, SEMPO now expects spending to come in around $19.8 billion, down from it's previous forecast of $25.2 billion.
This comes just a week after Google CEO Eric Schmidt said the economy was "pretty dire" and admitted his company isn't immune to the effects.
Shares of Google closed the day down 5.57% to $290.89.
See Professor Jeff Macke's Time To Buy A Peck of Apple? for related information.
From the Bull Pen: Taking a cue from Professor Macke, one can look to Apple (AAPL) for a trade. His entry target is near $80 with a stop at $75.
From the Bear Cave: Is Google on its way to retest new lows? First support seems to be around $285. It's a risky play so remember to set your buy stops.
Have a good night!
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