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Google Shares Take Another Hit After Downgrades

Google’s stock is down almost 40% from its all-time high recorded last November, wiping about $80 billion from the firm’s market capitalization. New reports suggest that Google’s paid clicks advertising model may be on the decline.

Comscore surprised Wall Street with what the firm believes is a big decline in one of Google’s key business areas. The market research firm estimates that paid click growth in January was down about 7% from December and down about 12% from January last year.

There appeared to be little doubt in Comscore’s numbers on Wall Street as several banks almost immediately downgraded their price targets for Google’s stock as well as earnings expectations. The Bank of Montreal and UBS decreased Google’s price target from $690 to $590.

Google shares traded for $452.15 early Tuesday, down about 7% or $34 from Monday. The stock is down about 39.5% from its all-time high of $747.24, which was hit on November 6, 2007.