Internet companies are being walloped by the downturn in the stockmarket.

According to the NY Times UBS analyst Benjamin Schachter, lowered third-quarter estimates on companies like Google, Yahoo and eBay. Google dropped by 2.7%, Yahoo, 8.1% and Ebay 6.2 % . Amazon.com fell by 8.2 % after he made his declaration.

Schachter said UBS was lowering its estimates and price targets across the board.  Basically the world was a bad place a the moment and this will  impact the online advertising market and consumer spending.

Google is a bit better off than anyone else,  but he didn’t think any business model based on advertising or consumer spending that will be immune to a downturn. Schachter said that despite economic conditions, he still liked Google and Yahoo as companies.

He thought Google would do well because it continues to gain share in the online ad market, and Yahoo because it has value 'and most likely will eventually be bought by Microsoft.' X
 

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