Autobytel: Google’s new mobile auto ads may impact lead volumes and cost per lead. The impact may be more apparent after Google completes its beta testing.

Typically, the announcement of Google effectively competing with a online advertiser for traffic would be considered a material business risk.

Given that Autobytel is a small cap company and not as broadly followed as large cap companies, perhaps investors are not aware of this announcement. I first saw the related WSJ article and then had to do a fair amount of searching to find the link to the related May 5th Google Adwords video minutes 8:15 to 12:45.

Or, perhaps investors were confused by the CEO’s response to Google algorithm questions discussed on the Company’s last earnings call Q&A. The new mobile auto ads are not the referenced 4/21 “mobile-friendly update”.

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