Internet companies feel economic pinch

Previously resilient to the woes of the troubled U.S. economy, Internet companies have finally succumbed to the downturn, the New York Times reports.

On Friday, the Dow dropped more than 7 percent and the Nasdaq more than five percent. The day before, one analyst, Benjamin Schachter of UBS, lowered third-quarter estimates on companies such as Google Inc., Yahoo Inc., and eBay Inc., whose shares dropped 2.7 percent, 8.1 percent, and 6.2 percent., respectively. Surpassing those was Amazon.com, which dropped by 8.2.

UBS was "lowering our estimates and price targets across the board to reflect a deteriorating macroeconomic environment that we expect will inevitably impact the online advertising market and consumer spending, likely continued unfavorable foreign currency fluctuations (at least in the near term), as well as other company specific factors," Schachter said.

"We view Google as some what better positioned for a recession than its peers, but we see no business model based on advertising or consumer spending that will be immune to a downturn," he said.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close

Trending

  • POWER TRAINING: How to engage your customers

    Don't miss our Aug. 2 Washington Technology Power Training session on Mastering Stakeholder Engagement, where you'll learned the critical skills you need to more fully connect with your customers and win more business. Read More

  • PROJECT 38 PODCAST

    In our latest Project 38 Podcast, editor Nick Wakeman interviews Tom Romeo, the leader of Maximus Federal about how it has zoomed up the 2019 Top 100. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.