Paid search interest drops
25 February 2005
Shares in internet search engine companies have started to drop over the last week, adding fuel to claims that there may be a price bubble in the market.
Investors appear to be getting more concerned about paid-search pricing growth at the big firms like Yahoo! and Google, while also worrying about the effect competition is having on smaller firms.
Earlier in the year, online auction giant eBay claimed that experimenting by some merchants had seen paid-search pricing to what appeared to be bubble levels, suggesting prices would eventually come down.
The current climate suggests that such predictions may have been correct, and search firms may face an anxious wait to see whether continually interest from advertisers will be strong enough to pull them through a potential sticky patch.
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