Google's shares plummet following disappointing second-quarter results

Wellington, July 19 (ANI): Search engine giant Google's shares have reportedly dropped by more than 5 percent in its second-quarter as a result of a decline in its revenue.

According to Stuff.co.nz, Google's results were short of Wall Street's estimates because of weakening of the company's ad prices and widening losses from its Motorola mobile phone business weighed on the bottom line.

The report said that Google's share were down at 863 dollars as the average price of its online ads decreased 6 per cent year-on-year in the second quarter, compared with the first quarter's 4 decrease, even as the overall number of internet user clicks on Google ads increased 23 per cent during the quarter.

An analyst with B. Riley and Co., Sameet Sinha said that most of the incremental clicks on Google ads are either coming from international or mobile users which are not as high-priced as domestic or desktop clicks.

Analysts expected 14.4 billion dollars revenue from Google's Motorola mobile phone business while it reported 14.11 billion dollars.

Revenue for its core business rose 20 per cent to 13.11 billion dollars.

Motorola, a money-losing handset manufacturer Google acquired in 2012, racked up a loss of 218 million dollars before items, more than four times the 49 million dollars it lost a year earlier.

An analyst at Needham and Co., Kerry Rice said that Google outsourced the Motorola manufacturing and sold the home business and so it was expected that Motorola's margin would be higher, the report added. (ANI)

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