Demand Studios Claims Ehow Unaffected By New Google Algorithm, Stock Prices Fall

Demand Media has rejected all the buzz going around about it falling victim to the recent changes brought in by Google in its page-rank-algorithm system.

Earlier, the shares of the online company based in Santa Monica, California dropped significantly after it had reportedly lost its visibility in the Google search results following the recent updates made in Panda-the page rank algorithm system of Google.

“Reports attempting to estimate the effect of recent search engine algorithm changes made by Google on traffic to the Company's owned and operated websites have significantly overstated the negative impact of those changes on traffic to eHow.com,” the company said in a statement.

However, the company only referred to its own internal assessments in the statement and refrained from providing details.

Earlier, Demand Media projected $310-$325 million in revenue for the 2011 financial year, but traders seem to be doubting the company's optimism. After Sistrix reported that Demand Studio's visibility dropped by 66 percent the company's shares fell to $18, the lowest price in four months.

The company's blog has directly denied that eHow.com has suffered a drop in visibility.