BusinessCompany NewsGoogle CFO warns boom days are over

Google CFO warns boom days are over

Comments at Conference send share price tumbling

Google’s stock price fell by 7.1% yesterday after the search engine’s chief
financial officer warned that the company will be unable to continue the stellar
revenue growth of the past.

At the Internet Advertising, Information and Educations Conference that was
hosted by Merrill Lynch in New York, Google CFO George Reyes explained that the
company’s past growth had in part been the result of an 18 month project to
optimize its online advertisement technology. He also said that he believed that
the company had reached the limits of its optimization efforts.

‘Most of what is left is organic growth,’ Reyes said. ‘Which means you have
to grow your traffic and you have to grow your monetization. Clearly our growth
rates are slowing and you see that in each and every quarter and we’re going to
have to find other ways to monetize the business.’

The optimization project explains the steep financial growth that Google
demonstrated after the company went public in the summer of 2004.

The remarks initially sent Google’s stock prices down by as much as 13%. The
shares later slightly recovered and closed the day 7.1% lower at $362.62.

The news comes after Google failed to meet analyst expectations in it’s most
recent financial quarter. The news at the time sent down Google stock by 12.4%.

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