Google shares plunge 5% after earnings miss
SAN FRANCISCO -- Google reported second-quarter sales below analyst estimates as advertisers continue to switch to reaching consumers through smartphones and tablets instead of desktop computers, driving down average prices.
The miss sent Google shares plunging 5% in after-hours trading.
Revenue, excluding commissions paid to advertising partners’ sales, was $11.1 billion, falling short of the $11.4 billion that analysts expected.
PHOTOS: Killed Google products
Google has been making efforts to make it easier for advertisers to reach consumers on smaller mobile screens, but in the second quarter its average cost per click declined 6%. In February, Google took the wraps off a new push to get advertisers to buy more ads on mobile devices. The program becomes mandatory later this month. Google is also wooing users to its mobile services in an effort to boost advertising.
Still, said Colin Gillis, an analyst at BGC Partners, “Google still has a massive mobile problem. And the core business is slowing down.”
Second-quarter profit, excluding some items, was $9.56 a share. Analysts had expected $10.81 a share.
ALSO:
‘The Internship,’ now starring...Google
On eve of Google developers conference, company ‘hot again’
Google reclaims No. 1 spot in the tech world, but its hold may be tenuous
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
