I will say it again, there is a certain amount of fraud priced into every transaction based exchange. Liability insurance, malpractice insurance, insurance premiums in general, ad. pricing, even clothing at retail locations. Fraud is a way of life for many and it does affect the pricing of all things.
Cuban doesn't have any more sources than does anyone else. He is no more a trader than you or I with his own set of subjective biases. If he was in GOOG's court, he wouldn't even be mentioning it. Chances are, he is in deep with a minority player, that is his nature.
Does that preclude anything from happening in the future? No. But, at this point click fraud is being absorbed within the cost of the advertising pricing model and at a rate that is not an issue with advertisers .... at some point, that may change. Or, it may not. There will always be fraud with this, and any, type of transactional service, but much of it will be absorbed within the pricing with the expectation that the providers will do what they can to attack it. It is in their best interest to do so.
J |
