Off the top of my head, the last thing that comes to mind is Panda and Penguin.

More likely (and it's just an off-the-cuff) theory, I'd speculate that profits are down because more people are accessing the web via smart phones and tablets ("mobile" in general) -- it's well known that it's more difficult (and less profitable at present) to make a buck this way.

It's also Facebook's problem at the moment.

Add in the fact that recently, all the big PC makers just reported that PC sales are down anywhere from 8% to 28% over the past year and thus their profits (in all cases posting losses actually), the mobile theory holds.

The migration to mobile continues and it's a difficult reality to monetize in terms of ad revenue (the life blood of Google...and Facebook).

LOL.. this has nothing to do with Panda and Penguin. The world is increasingly going mobile which is resulting in lower ad revenue.

The problem with Google is that they are a brand, although a good one that dominates the market. The problem with being a brand though is you are constantly at the mercy of trends, meaning competition(Twitter, Facebook). Google might dominate now, but people are finding other ways to access information that is diluting their profits.

I doubt if it's Panda and Penguin related. Every business has its up's and down's... they'll probably rebound next quarter.

I think Google is losing out in mobile advertising because these days people surf the web more with their mobile phones..

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I hate this panda and penguine it affects a lot...

They wrote off a load of money on a past Motorola acquisition - apparently nothing to do with search.

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Yes, Google is cutting it's own head off every time it sells an Android device!

Some companies are KILLING IT in mobile though. An example is Plane Finder (free desktop version, paid for mobile version, and by the way VERY good FB postings to their fanbase). But Google and FB aren't monetising mobile nearly as effectively.

Don't tell me that Panda/Penguin haven't hurt Google's bottom line though. There must have been some effect.

They reported a huge decline in advertising revenue which has had an impact on their value as they are unlikely to get it back as there as so many other options available know

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