The Google Growth Lie

Amr posted about Wallstreet buying the Google Growth Lie. While I wouldn’t put it so harshly, as growth is growth, it is true that the options for growth for Google are decreasing. Prices on AdWords are not gowing to grow forever, prices they have to pay for AdSense users will increase, their own site will not grow at 100% a year for much longer, additional services will not make the same revenue as search via ads, optimization can go far, but not in 100% increases, and the competition is rising. Next quarter will be interesting as they won’t be able to say that their profit increased as much. One thing to keep in mind though is that the last quarter is really a place where advertisers tend to spend more money.