Recession hits Google too!!

The Internet moneymaking juggernaut Google Inc. is no exception to the international recession. Google Corporation has reported slowing of revenue growth and an increase in profit supported by sharp cost cutting policies.

However the Chief executive commented that “No company is immune” to this severe hit recession. He also claims that Google is still at the profiting end and the fall in the growth will definitely be corrected with some stringent policies.

The reason for Google’s slowing growth is attributed to most obvious reason – “The consumers are spending less and so advertisers don't need to bid as much money to place ads on Google's search page”. But the Google’s main worry is that they could not able to broaden its revenue stream beyond Web search. Now Google’s think tanks are gunning down for other opportunities to boost up their revenue. And even in web search yahoo is now giving a stiff competition and if Microsoft underwent a tie up with Yahoo then things will turn worse for Google.

Google's first-quarter reports shows revenue as $5.51 billion, down 3% from the fourth quarter but an increase of 6% over the first quarter of 2008. However the chief executive reported that the figures are better than their expectations.