Feeds

Google shares fall on less-than-stellar growth fears

More competition

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Google shares fell three per cent today, after the company said its growth rate is unsustainable.

The internet search engine company had revenues of $805.9m to the end of September, a 105 per cent increase on the $394m made in the same quarter of 2003. Given such growth, it is unsurprising that the company's regulatory filing with the US Securities and Exchange Commission (SEC) points out that this is unlikely to be sustained into the future.

More significantly, the company says that increased competition in the sector is likely to temper growth. Competition is likely to come from companies such as Microsoft and Yahoo!, which also provide internet portals and sell internet advertising space. Microsoft recently introduced a test version of a new search engine and has announced plans to develop features that make web search a more integrated part of its Windows operating system. Yahoo! has become an increasingly significant competitor, having acquired Overture Services, which offers internet advertising solutions that compete with Google's AdWords and AdSense programs.

"If Microsoft or Yahoo! are successful in providing similar or better web search results compared to ours or leverage their platforms to make their web search services easier to access than ours, we could experience a significant decline in user traffic," Google said in its filing.

The company said that operating margin is likely to decline in 2004, mainly due to a third quarter charge of $201m related to the patent settlement it made with Yahoo! over Adwords.

© ENN

Related stories

Microsoft's Google-killer arrives with a 'whuh?'
Google buys CIA-backed mapping startup
Google passes on portal
Google Desktop privacy branded 'unacceptable'
Google launches desktop search for Windows PCs

Boost IT visibility and business value

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.