Google Forecast: An Algorithmic Analysis

Google (GOOG) is by far the most popular search engine for users in the US and most of the world. The tech giant’s most recent earnings report, released January 29th, fell short of expectations. The disappointing revenue and earnings per share figures came at a time when there was general pessimism about the future of the company. The pessimism was driven by the overall shift of the market to mobile, where ads are cheaper and where users prefer to search through apps over browser-based engines.

The most concerning aspect of Google’s future outlook was its declining cost-per-click rates. For several quarters in a row, CPC rates have fallen as consumers shift to mobile devices. Last quarter saw a further 8% drop in average CPC rates on Google sites, which is concerning, but the company did see growth in paid clicks of 14%, including 25% on sites it owned and operated. google forecast