Google's Earnings Report: Search Engine Company's $14.48B Sales Fall Short of Predictions
Google is trying to find ways to get more money, even though the company raked in $14.48 billion in the last quarter, CNET reports.
Google's earnings of $14.48 billion in sales and profit of $6.88 per share fell short of what Wall Street expected. Bloomberg analysts expected $14.7 billion and profit of $7.12 per share.
The world's biggest Internet search engine has been trying to find ways to replicate its competitors' advertising successes, especially mobile ads.
Facebook and other competitors of Google have been successful with mobile ads, but Google has not. Instead, Google makes 90 percent of its profit on its desktop search engine and other ads.
That concerns analysts. They believe the desktop search engine is becoming outdated as more consumers use their mobile devices to search for items online.
Facebook knows that mobile advertising is a big area of focus. It said Wednesday 70 percent of its $3.85 billion in ad sales came from mobile ads.
Google takes measure of paid clicks. That is the amount of times a consumer clicks on one of their ads. That is how they get paid. In 2013, the rate of paid clicks rose 31 percent -- this year it only rose 14 percent.
Google is trying to become involved in other projects besides its search engine. Self-driving cars, Wi-Fi enabled balloons and even becoming a wireless carrier are all initiatives Google is working on.
The new developments Google keeps secret at its Google X lab go under the "other revenue" category. This figure makes up only 11 percent of the sales last quarter, but Google still is focusing on it.
Why do you think Google missed earnings? What can Google do to stay competitive? Leave us a comment below and let us know what you think.
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