While Google’s 4th quarter profits jumped 17% and sales grew at 51%, the numbers were short of expectations. Google’s stock went down and questions are being raised about whether or not the search giant can weather a potential economic downturn.
Healthy business from advertising made up the cornerstone of Google’s growth, but analyists expected much more. For the year, Google’s revenue was $4.83 billion, up from $3.21 billion the year before.
“I don’t think Google’s ad model is insulated from a recession, but it is probably less vulnerable to cutbacks than other online ad models and definitely than traditional advertising,” said Scott Kessler of Standard & Poor’s.