Google Hiring Slowdown? We Hope So (GOOG)

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GreatDepression2.jpgThe folks at Wired, Valleywag and other sites are debating whether Google (GOOG) is cutting down on new hires. But this one is pretty straightforward: Google is cutting down on new hires.

How do we know? Because Google has told us that it's cutting down on new hires. And Wall Street likes this, because Wall Street is constantly worried about both Google's payroll and capex, especially as margins shrink. Here's graphic representation of that concern, via AmTech's Rob Sanderson:

google hiring.png

The good news, says Sanderson: Since new hires at Google are down 41%, y/y, over the last nine months, margins should improve in the last two quarters of 2008.



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2 Comments

split said:
Who cares?

They don't split the damn stock, I ain't clicking the damn paid ad's.

If I cannot own a piece of google, they ain't got my click.

I cannot shell 500 bucks for 1 stock. I would like to buy 5 or 10 for 50 bucks each and watch it go 100 rather than buy 500 and be scared to death everyday.

Alex (URL) said:
Lower the margin via hiring slowdown? Ok - fine, that will work. There are other methods to increase profit margin though. Believe me, Google has knobs to turn and it will match any earnings estimate projections (at least in the nearest future). Things go a little slower, then they lower the payout to adsense network. They are still a top monetizing tool for many content publishers and there are no alternatives for them in terms of payout.

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