While Google continues to report strong revenue growth, Google’s earnings second quarter fell below Wall Street’s expectations.
Google Earnings Q2
-Google reported $14.11 billion in revenue, $3.23 billion of net income, and EPS of $9.54. In comparison with, Wall Street analysts expected $14.42 billion in revenue, $3.6 billion of net income, and EPS of $10.78. While failing to meet these expectations, Google still garnered a revenue growth of 22%.
-Though the number of clicks were up 22%, costs-per-click fell 6% year over year and has fallen 2% from the quarter before. Attributable to this is the increasing number of mobile interface users. Smaller screen sizes on mobile devices prevent interfaces from displaying multiple ads. Google has been working hard this quarter moving to mobile advertising in order to increase their customer’s ROI.
–Google’s stock closed Thursday at $910.68, down 0.86%. Even during after hours trading, Google suffered an additional 4.12% drop down to $873.14.
The Future is Now
The focus of Google’s future will remain heavily vested in search and display ads, businesses with a high consumer rate such as android and Youtube, and further development of innovative products in the likes of Google Fiber, Google Glass, and most excitedly, self-driving cars.
Google’s Earning 3rd Quarter 2013
Most intriguing to observe next quarter is how Google will guide their current advertisers to the mobile advertising platform.