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Friday, July 19, 2013
Google 2Q Results Hit By Low Ad Rates

Google sees the computing shift to smartphones and tablets as a golden opportunity, but the Internet giant's second-quarter performance showed that Google's average ad rate fell from the previous year for the seventh consecutive quarter.

The "cost per click," fell 6 percent during the three months ending in June.

Excluding the costs of stock given to employees, Google's operating expenses climbed 27 percent from last year to $4.25 billion, as the company is pouring large amounts projects such as the development of driverless cars and balloons equipped with Internet-beaming antennas.

Motorola Mobility also lost $342 million in the latest quarter. Google CEO Larry Page told analysts on a Thursday conference call that he is excited about the upcoming release of a new phone called Moto X.

Google earned $3.2 billion, or $9.54 per share, in the second quarter up 16 percent from $2.8 billion, or $8.42 per share, a year earlier.

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