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Technology Stocks : Alphabet Inc. (Google)

GOOGL 158.47

+3.7%

3:59 PM EDT

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From: Gabriel008	1/31/2006 9:44:31 AM
	of 15844

Internet Stock Blog rebuttal to the NY post article on click fraud essentially saying this problem is a big red herring. Note this comment; This sort of article strikes me as a strong positive for Google. Spurious walls-of-worry are generally good for stocks, and the click-fraud issue is entirely bogus. The beauty of the PPC-ad auction system is that advertisers set their budgets based on the return on investment. (Price paid = number of clicks x conversion-to-sale rate x profit per conversion.) So more fraudulent clicks simply mean that advertisers bid less per click. Eliminate the fraudulent clicks, and the drop in the number of clicks is offset by the rise in the conversion rate, so advertisers spend… exactly the same amount. So much for a 30% drop in Google’s revenue! internetstockblog.com

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