A Fuller View

According to a piece in SAI today Google may be “very exposed to US recession.” I would agree with some of the logic in this insider analysis. However, Google has so much organic growth, new products and ways to optimise their business that they may be able to weather things better than most. The key points are:

A significant percentage of Google’s customer base is exposed to economic weakness(logic below), and
As consumers spend less, the ROI for many Google advertisers will drop–and this will cause them to spend less on Google (We concur with this view, which is still a minority view.)

I would more inclined to think that online companies that are more on the margins, such as 2nd & 3rd tier networks (such as Miva, Looksmart, Infospace and others) would suffer and some may likely perish is a US recession. What do you think?