MOBLIE LETDOWN: Google's second-quarter earnings and revenue fell below analyst forecasts, partly because the Internet search leader's ad prices took an unexpected turn for the worse. The problem is linked to the rising usage of smartphones and tablets, whose smaller display screens so far have commanded lower ad rates than for marketing pitches delivered on personal computers.
WHAT HAPPENED: The results announced Thursday revealed that Google's average ad rate, or "cost per click," fell by 6 percent from last year. It marks Google's seventh consecutive quarter of declining ad prices.
INVESTOR REACTION: Google's stock fell by about 4 percent in extended trading.
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