Bad news for Google as the search engine giant’s shares have plunged by more than 5 percent in the second quarter as a result of a decline in its revenue. According to a report, Google’s quarter results fell short of Wall Street’s estimates with a weakening ad price as well a big gap from the company’s mobility division acquired from Motorola. Google’s ad prices fell down by 6 percent year on year in the second quarter of the current financial year as compared to a 4 percent in the previous quarter.
Internet users count has been reaching new peak and the number of clicks on Google ad has increased 23 percent in the quarter, as stated in the report. According to analysts, the increment has come from international or mobile users but unfortunately they are not as high priced as domestic or desktop clicks. Motorola gave a revenue of $14.11 billion, missing an estimate of $14.4 billion. Although, Google’s core business has outshined with a rise of 20% business up to $13.11 billion.
Google has been foraying into a lot of new businesses lately and it will be interesting to see how the firm assures its investors to hold back so that its shares soar back to its high time.