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Technology Stocks : Alphabet Inc. (Google) -- Ignore unavailable to you. Want to Upgrade?

To: KeepItSimple who wrote (6858)	1/31/2006 12:51:09 PM
From: Trader J	Read Replies (1) \| Respond to of 15851

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

To: KeepItSimple who wrote (6858)	1/31/2006 2:42:07 PM
From: EnricoPalazzo	Read Replies (1) \| Respond to of 15851

>Saying 30% fraud is just a "cost of doing business" is even more absurd. What about when it gets to 90% ? How do you know that click fraud isn't already priced into the CPC? Even if click fraud gets worse going forward, the increase in clicks should roughly offset the reduction in CPC's. I can see a case that click fraud increases the variability in advertiser returns thus slightly reducing the price they are willing to pay per "real click", but I don't see this as a huge problem for Google.