Friday, November 13, 2009

Does Google manipulate its Stock Price through Click Fraud?

I run a web site using Yahoo! Merchant solutions that does a good job tracking the page views in real-time. Today at 2:40 PM Pacific time, I had 125 page views according to Yahoo! However, Google Adwords campaign Manager is charging me for 440 clicks. Assuming all the page views came from Google, I am being shorted 315 paid clicks. That is fraud!





My question is Google able to manipulate its earnings through click fraud? Google’s stock price closed on 11-25-2006 at $505.00 per share that remains me of the Internet bubble in the late 90’s that crashed and burned.





Since Google’s main source of income is Adwords and the stock price of a company is set by the revenues, could Google allow the same fraud that can be seen in their Adsense model also take place in Adwords.








FYI about Adsense Fraud. The way it works is someone sets up a Web site with a keyword, say “carrot juice” and puts minimal text that says something about carrot juice, recipes, etc. They then surround the text content wi

Does Google manipulate its Stock Price through Click Fraud?
First, the real or imaginary "click fraud" is not manipulating the stock price. The stock price is another stupid bubble that will burst upon headlines any day now--the irrational exhuberance cannot be sustained. See the CNN/Money/Fortune article.





Second, there is a lot of fire and fuss over the definitions of clicks and it isn't just Google that is in the dispute. Notice the businessweek articles.





Stock prices are not Google's manipulation, from what I read the people at Google are just perplexed at why their stock is flying so incredibly high--but they are pleased as can be that it is.
Reply:Good question. It is AMAZING to me that a company who only provides internet searches pulls in so much $$$. Stock hitting $500. Is Yahoo really doing that bad? The CEO's of the company hire other people to run the business, they don't do much anymore. I see another Enron about to happen here. If you got into Google when it was even $450 a share, I'd be ready to hit the trigger at the first sign of distress.


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