Since the announcement from Google that the company will have a “new approach to China” on January 12th, the Dow’s gone up 1.20 percent and the Nasdaq’s risen 3.52 percent, according to reports. Google’s stock, however, fell 7.41 percent. A financial analyst said that there’s no reason to panic if Google does decide to pull out of China.
If Google does stop operations in China, the effect of the company’s earnings would be almost impossible to notice. Google doesn’t make much money in China since its only “about one percent of their total revenue, according to Clayton Moran of the Benchmark Company. So this is not a “meaningful contributor.”
Moran told CNBC, “Five years from now, it’s about growth and the potential for growth and China’s obviously the largest Internet market by users. So therefore it was a big opportunity for Google and they’ll miss out on that.”