Google believes that computing shift to smartphones and tablets as a golden opportunity, but a disturbing reminder, it brings a lingering financial challenges as well as the Internet search giant's second quarter results.
Thursday's report shows that Google's average ad rates from last year for the seventh consecutive quarter of decline. In an unexpected twist, the first decline in a year to deepen.
Average ad rate, or "cost per click" in the three months ending in June, a decrease of 6%. The first three quarters of decline eased to improve the hope is broken. Instead, things deteriorated during the first three months of the year ad rates fell 4%.
Return to weaken Google's earnings and revenue. Both fell below analysts' forecasts, frightened some investors. Google shares fell $ 37.18, or 4%, $ 873.50 in extended trading after the results came out.
Other unwelcome developments are also shrouded in season.
Does not include the cost of the stock to employees, Google's operating expenses rose from 27 percent last year to 4.25 billion dollars. This growth renewed concerns about Google being poured too much money in the distant projects, such as unmanned vehicles equipped with Internet beaming antenna and balloons, rather than focusing on the main business of Internet search and advertising development.
Decline in mobile phone manufacturer Motorola, Google is $ $ 1.24 billion purchase of 14 months ago, it is still a headache. Subsidiary lost $ 342 million in the latest quarter, from $ 198 million a year earlier expanded during the reporting period is just one part, Google owns Motorola. Motorola has now lost a total of $ 170 million yuan, according to Google's ownership, despite layoffs and divestitures whittled Motorola employees 4,600 people, from 20,300 a year earlier.
Although he does not predict when Motorola may start to make money, Google CEO Larry Page told analysts on a conference call on Thursday, said he was very excited about the upcoming release of a new mobile phone called Motorola X. page phone does not provide further details, he and other Google employees have been testing.
If Google backup Moto X expensive marketing blitz that will drive the company's expenses, later this year.
Mobile advertising, though, investors are the biggest problem.
Although not a serious problem in other companies, including computer manufacturers such as Dell and Hewlett-Packard, Google still has trouble navigation technology, smart phones and tablet PCs on the transition, and promote more online activities. These devices for the Google company brings financial challenges because of its smaller screen size the lower advertising rates than traditional desktop and notebook computer sales pitch.
Google is in a better position, from the booming mobile computing, because it makes Android, the most widely used smartphone operating system. The software also gain traction in the tablet PC, set the pace to challenge Apple iPad. Google is expected to launch the next generation of Nexus tablet runs on Android next week.
Android's Google's search engine and other services, such as maps and Gmail typical characteristics, to Mountain View, Calif., the company more opportunities to display ads.
Now, Google is taking steps to persuade advertisers to pay higher prices, consumers in the mobile devices connected, and sometimes, they will consider a purchase or possibly in the business neighborhood.
Google is trying to drive up prices more quickly by changing the sale of advertising products at the same time, they plan activities designed to purchase mobile devices in the computer more and more spots on the marketing methods. About 600 million advertising customers have switched to Google's new pricing system. All marketing will be forced to take new measures, known as the "Enhanced Movement," by the end.
In a conference call on Thursday, introduced the switches Enhanced Movement, the biggest change, Google has done more than a decade ago launched an online advertising platform.
Page said: "I think we are still very, very early stages." "We changed a tremendous amount of our team works, how to operate our advertisers, how everyone buys these ads, users see what we've done pretty well."
Wedbush Securities analyst Shyam Patil said he believes Google in mobile advertising in the right direction, although the second quarter of the price slide.
"They want to come up with the right solution, but now I do not know if it has to happen this year," he said. Patil also said that he expects Google shares rebound quickly, because too many investors believe that the company remains among the best bets in technology.
Google second-quarter revenue of $ 320 million, or $ 9.54 per share, amounting to $ 280 million, or $ 8.42 per share, as compared to an increase of 16%.
If not employee stock compensation costs and expenses tied to Motorola, Google said it would have earned $ 9.56 per share. In an interview missed analysts polled by FactSet average of $ 10.80 per share target.
Revenue grew 19% to $ 14.1 billion, from $ 11.8 billion U.S. dollars.
Subtracting Google's advertising commissions, revenue reached 11.1 one billion U.S. dollars - about $ 2.75 million below analysts' forecasts.
 



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