In recent news, Google has announced their Q2 earnings with revenue at $14.11 billion and earnings per share at $9.56. This report was below expectations and has caused the stock to take a dive, with analysts looking for earnings per share at $10.80 and revenue at $14.5 billion. From the news of the Q2 report the stock sank $37.18 or around 4%.
In Google’s report they announced that their average ad rate fell 6% within the last three months adding to the downward trend that the company was having from their “cost per click” ad model. The lower than expected revenue continues to put concern on the operating expenses that Google is spending on projects that have little relevance, such as driverless cars or antenna equipped balloons. Although things did not turn out as well as Google might have hoped for their Q2 report, the company is looking to increase ad prices on mobile devices to help drive revenue.