Google’s Search Lead Can’t Help Stock Price

Google continued to lead the search market by a large margin in June, but this encouraging information couldn’t prevent Google’s stock price from sliding late last week.

According to the latest numbers released by comScore’s qSearch analysis, Google Sites handled 61.5% of all searches conducted in the U.S. in June, a decline of 0.3 points from May’s 61.8% share. Meanwhile, Yahoo! Sites saw its share jump from 20.6% in May to 20.9% in June.

Microsoft Sites attracted 9.2% of all queries conducted in June, reflecting a 0.7 point increase from May’s 8.5%. Ask Network handled 4.3% of all searches, a 0.2 point decline from May’s 4.5%. AOL LLC’s share took a step down from 4.5% in May to 4.1% in June.

comScore notes that searchers in the U.S. conducted 11.5 billion queries using the core search engines in June, a 7% increase from May.

Hitwise reported that Google’s search share was 69.17% in June, an uptick from May’s 68.29%, and an even bigger increase from last June’s 63.92%. Yahoo!’s search share was 19.62% in June, compared to 19.95% in May and 21.31% last year.

MSN’s search share was 5.46% in June, according to Hitwise, a decline from May’s 5.89%, and a considerable drop off from last year’s 9.85%. Ask.com’s search share was 4.17% in June, a slight decline from May’s 4.23% share, but an increase from last year’s 3.42%.

Nielsen Online also reported that Google led the market. The firm’s figures note that Google handled 59.0% of all searches in the U.S. in June, while Yahoo! had 16.6% of the market. MSN/Windows Live took a 14.1% share, followed by AOL’s 4.3% and Ask.com’s 2.0%.

Still, despite Google’s obvious dominance in the core search engine market, it’s obvious that success in that sole realm does not translate directly into great results for the Internet giant’s stock price. Late last week, Google’s earnings per share fell short of analysts’ expectations, causing the company’s stock to plummet almost 8%.

Sources:
http://www.comscore.com/press/release.asp?press=2337

http://hitwise.com/press-center/hitwiseHS2004/us-google-70-percent-of-searches.php

http://www.nielsen-netratings.com/pr/pr_080718.pdf

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