Nov 11 (Reuters) - Goldman Sachs cut its price target on Google Inc (GOOG.O) and trimmed its fourth-quarter revenue outlook, sending the Web search company’s shares down to their lowest level in three years.
“Paid search is typically a real-time media sale, so revenue should react rapidly to macro deterioration,” said Goldman, which cut its target price on the stock to $475 from $520.
The brokerage cut its fourth-quarter revenue growth forecast on Google to 1 percent from 4 percent sequentially, citing poor macroeconomic and consumer data in October. The company posted revenue of $5.54 billion in the third quarter.
Goldman said its new forecast also reflected negative commentary on search trends in September and October from Ask and AOL, who cited declining consumer propensity to click on paid links and advertiser willingness to bid up paid links.
On Monday, Barclays Capital cut its price target on the stock by $52 to $490.
Shares of the company were trading down 5 percent at $301.65 Tuesday on Nasdaq. Earlier, they touched a low of $300.89. (Reporting by Purwa Naveen Raman in Bangalore; Editing by Amitha Rajan)