Google's sales fall short of hopes
Google, which has its European headquarters in Dublin, reported second-quarter sales that fell short of analysts' estimates as advertising tied to mobile devices crimped average prices.
Revenue, excluding sales passed on to partner sites, was $11.1bn (€8.5bn), Google said yesterday on its website. That compared with an average analyst estimate of $11.3bn, according to data compiled by Bloomberg. Shares slid as much as 5.6pc.
Google's average cost per click, a measure of advertising rates, fell 6pc as more marketers aimed to reach consumers through smartphones and tablets instead of desktop personal computers. While the company has been adding tools for customers to reach mobile web surfers, those efforts are still gaining steam.
"The challenge is for Google to reignite revenue growth as their existing businesses start to mature," said Colin Gillis, an analyst at BGC Partners in New York, who rates the shares hold. "The core business is slowing down."
The stock has advanced 29pc this year. The average smartphone-based search ad costs 40pc less than a comparable promotion on a desktop.