Forum Moderators: martinibuster
What is the corelation, if any, between Google stock and adsense?
Scenario One: for example, if Google stock was to plunge to less than $100 in a matter of few weeks, from its current price of about $600, would that effect Adsense in any way? I know there are many other variables to look for, but I am just trying to find any general corelation between the two.
Scenario Two: On the other hand, if Google Adsense/Adwords has more advertisers and publishers, all of quality content, keywords and bidders, would that drive Google stock up?
I think the second scenario is more likely, but not sure about the first one.
Has anyone done any correlation comparison (preferrably using a graph) between their Adsense Earnings and Google's stock price, for the last 3 years for example, or maybe since you started with Adsense.
This could be another variable piece of this so-called Adsense Puzzle.
...if Google stock was to plunge to less than $100 in a matter of few weeks, from its current price of about $600, would that effect Adsense in any way?
If it did, that would be very suspicious. A drop in the perceived value of a share in Google shouldn't have any effect on advertising revenue. It's the other way around, as you described in #2.
To clarify... let's say a market analyst announced that GOOG is overpriced, and that triggers a selloff, which in turn causes the price to plunge. If advertising revenue went down simulataneously, you would hear comparisons to Enron.
