Google Could Catch a Cold From the Economy

Any weakness in paid clicks -- whether real or perceived -- is enough to spur a selloff, as evidenced by the lead-up to Google's first quarter, when research firm comScore reported a slowdown. Google's stock fell dramatically as a result, even though the company's first-quarter results proved to be stronger than expected.

Although Google saw strength in its international business in the second quarter, which represents 52% of its total revenues, much of that was driven by a favorable currency exchange. Excluding foreign exchange in the first quarter, the company noted that its second-quarter revenue would have been $88 million lower. And excluding foreign exchange from the second quarter of last year until the second quarter of this year, revenue would have been $249 million lower.

Still, many analysts remained upbeat on the company, calling now a good buying opportunity despite concerns about the economy.

"The macro environment is uncertain and becoming more challenging," wrote Rob Sanderson, an analyst for American Technology Research, who has a buy rating on the company. "GOOG is well diversified across industries and geographies and business is proving very resilient. GOOG is among a small handful in large-cap tech companies that can maintain strong growth in a difficult environment."

Nonetheless, Sanderson lowered his price target on Google, to $725 from $750.