This chart shows why Wall Street is so worried about Google's business
Google's digital advertising business has long been the envy of the online business world, and has help turned Google into a business with more than $56 billion in annual revenue.
But the red-hot growth that once made Google a Wall Street favorite is slowing.
Google's paid clicks, the frequency at which consumers clicks on its ads, has experienced a sharp deceleration during the past few years, as can be seen in the chart below from Bank of America Merrill Lynch. While Google's paid clicks were once growing at a rate of more than 40 percent year-on-year, they are now growing by a more modest 13 percent year-on-year.
Cost per click, the price that advertisers pay Google every time a consumer clicks on an ad, is also in a funk, although that's not new.
Bank of America Merrill Lynch
Google has said that the trend is the result of various factors, including the increasing role of its growing video advertising business, which monetize at different rates than its traditional ads.
Wall Street is clamoring for Google to provide more details about its various businesses, including revenue and profit for its YouTube business. It's unclear whether Google, which has a new CFO, will indulge Wall Street when it reports its second-quarter results on Thursday. But until Google gives investors new data to chew on though, investors will have no choice but to obsess over its paid clicks and CPCs.
- Singapore Airlines was ordered to pay a couple compensation for 'mental agony' after they complained their business-class seats didn't automatically recline
- Welcome to the white-collar recession
- A software engineer shares the résumé he's used since college that got him a $500,000 job at Meta — plus offers at TikTok and LinkedIn
- 'Panchayat' season three to come out on Prime Video on May 28
- Top places to visit in Pahalgam in 2024
- April auto sales – Hyundai continues to hold the second position as Tata Motors inches closer
- Amul to sponsor USA cricket team in T20 World Cup
- LG Saxena gives nod to sack 223 DCW employees hired 'without due procedure'